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Business confidence among Japan's big manufacturers improves

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="This picture taken on April 6, 2019 shows people walking across the landmark pedestrian crossing in Tokyo" s="" Shibuya="" district.="" Charly="" AFP="" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/overseas/09/22/20220922-japan.jpg"/><figcaption>This picture taken on April 6, 2019 shows people walking across the landmark pedestrian crossing in Tokyo&#x27;s Shibuya district. <em>Charly Tirballeau, AFP/file</em></figcaption></figure></div><p>TOKYO -- Confidence among Japan&#x27;s largest manufacturers rose as business conditions have improved for the first time in seven quarters, a key survey showed Monday.</p><p>The Bank of Japan&#x27;s closely watched quarterly Tankan survey is considered the broadest indicator of how Japanese businesses are faring.</p><p>It reports the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable.</p><p>A positive figure means more businesses feel optimistic than pessimistic. Among major manufacturers, business confidence rose to plus five from plus one three months earlier.</p><p>The reading came after the fifth quarterly drop in sentiment and an unchanged figure in December 2021, and beat market expectations of plus three.</p><p>Optimism also grew slightly among non-manufacturers, from plus 20 to plus 23, against market expectations of plus 22.</p><p>The better-than-expected large manufacturer confidence was due to &quot;improvement in the auto sector, which reflected an easing chip shortage and a lull in import price rises thanks to falling fuel costs,&quot; Tsuyoshi Ueno, senior economist at NLI Research Institute, told AFP ahead of the data release.</p><p>Improvement in confidence among non-manufacturers reflects recovery in the service sector after the lifting of Covid-related regulations and a recovery in inbound tourism, he said.</p><p>Looking ahead, the survey &quot;will likely weaken slightly over a potential worsening in the US and European economies following central bank rate hikes and a delay in the recovery of the Chinese economy.&quot;</p><p>The latest reading &quot;could be a factor in encouraging the BoJ to tweak&quot; a policy tool known as the yield curve control, which sets the band in which rates for 10-year government bonds fluctuate, he said.</p><p>But he expected no change in this month&#x27;s policy meeting, &quot;as there is no reason for the BoJ to rush.&quot;</p><p>Ueno and most other observers also expect the Bank of Japan to stick to its long-standing, ultra-loose monetary policy for the time being, in an attempt to boost economic growth.</p><p>The BoJ&#x27;s two-percent inflation target, which it hopes will lead to sustainable growth in the world&#x27;s third-largest economy, has been surpassed every month for more than a year.</p><p>But the central bank sees recent price rises as driven by temporary factors, and so has stuck to easing policies such as a negative interest rate.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/06/25/23/japans-ultra-wealthy-population-to-shrink-in-5-years-report">Japan&#x27;s ultra-wealthy population to shrink in 5 years: report</a></li></ul><div><strong>RELATED STORY:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2703775" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Confidence among Japan's largest manufacturers rose as business conditions have improved for the first time in seven quarters.