Japanese businesses remain in positive mood

TOKYO: Business conditions among large Japanese manufacturers improved in September for the fourth consecutive quarter amid an economic recovery, a Bank of Japan quarterly survey showed yesterday.

The closely watched Tankan index rose from plus 17 in July to plus 22 in September, which is above the average forecast of plus 18 estimated by economists polled by the Nikkei business daily.

Large manufacturers, however, expect the index to fall to plus 19 in the current quarter ending in December, according to the survey released by the central bank. The index for large non-manufacturers was flat at plus 23, the survey showed. Positive numbers on the Tankan index indicate the extent to which optimists outnumber pessimists in a sector of industry.

Large companies in the manufacturing and nonmanufacturing sectors expected their investments to rise 7.7% for the financial year through March 2018 from the previous year, compared with an 8% increase in the July result, the survey showed. Prime Minister Shinzo Abe’s government sees strong capital spending as key to reinvigorating the world’s third-largest economy.

The survey also showed business confidence among medium-sized manufacturers grew to plus 17 from plus 12 while the index for small manufacturers rose to plus 10 from plus 7. The September survey indicated steady growth among Japanese manufacturers. – dpa