A survey by a private research company revealed that the business confidence of companies in Hiroshima Prefecture improved for the first time in two months in July. However, the number of bankruptcies has increased significantly since the previous month.

According to a survey of 282 companies in the prefecture conducted by Teikoku Databank Hiroshima Branch, the business confidence index for July rose 0.7 points from the previous month to 42.7. This is the first improvement in two months.

While “finance” and “real estate” have “improved,” “retail” and “transportation and warehousing” have “worsened” for two consecutive months.

The number of bankruptcies in the prefecture rose to 20 in July, up 6 from the previous month and doubling from the same month last year. By industry, construction and retail had the most bankruptcies, with 6 each.

Teikoku Databank predicts that the economy will remain volatile for the time being, as the decision to raise interest rates has been made and rising interest rates could have a negative impact on capital investment and personal consumption.