Japan biz mood rises

tokyo — Confidence among Japanese manufacturers improved in May for the first time in four months while service-sector sentiment hit a record high, the Reuters Tankan poll showed, suggesting the economy may return to growth after a first-quarter slump.

The monthly poll, which tracks the Bank of Japan’s (BoJ) closelywatched tankan quarterly survey, also found that manufacturers’ morale was expected to rise further over the coming 3 months but the service-sector’s mood would slip a little while remaining buoyant.

The poll follows a gross domestic product report out last week showing that the world’s thirdlargest economy contracted an annualised 0.6 per cent in January-March, ending an eight-quarter

Corporate attitudes towards investment are improving [in Japan] Manufacturing firm manager

run of growth as demand weakened. Analysts expect the economy to return to growth this quarter led by overseas sales, although trade protectionism, rising oil prices and global politics pose risks to the world economy and export-reliant Japan.

In the Reuters poll of 541 big and medium-sized companies, in which 239 firms responded on condition of anonymity, managers expressed concerns over the uncertain global outlook.

“Business confidence in and outside Japan is holding firm and corporate attitudes towards investment are improving,” a manager of a machinery manufacturer wrote in the survey. —