AFP, Tokyo :
Confidence among Japan’s biggest manufacturers has jumped to its highest level in a decade, a key central survey showed Monday, as the world’s number three economy picks up pace.
The report comes after a batch of broadly positive economic data on Friday, including better-than-expected factory output, that offered up some good news for Prime Minister Shinzo Abe as he faces a national election on October 22.
The Bank of Japan’s Tankan report-a closely watched quarterly survey of more than 10,000 companies-showed a reading of 22 among major manufacturers in its latest report, the highest since September 2007 when the headline figure sat at 23.
The latest survey also handily beat market expectations for a reading of 18.
The report, the broadest indicator of how Japan Inc is faring, marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable.
The mood among major manufacturers-who plan to boost capital spending by 14.1 percent year on year-has now risen for a fourth straight quarter.
The index for non-manufacturers came in at 23, unchanged from the previous Tankan, and sitting at its highest level since the final quarter of 2015.
The upbeat survey underscores how Japan’s prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm.
“The continued improvement in business conditions in today’s Tankan points to robust economic growth,” research house Capital Economics said in a commentary after the report was published.
Confidence among Japan’s biggest manufacturers has jumped to its highest level in a decade, a key central survey showed Monday, as the world’s number three economy picks up pace.
The report comes after a batch of broadly positive economic data on Friday, including better-than-expected factory output, that offered up some good news for Prime Minister Shinzo Abe as he faces a national election on October 22.
The Bank of Japan’s Tankan report-a closely watched quarterly survey of more than 10,000 companies-showed a reading of 22 among major manufacturers in its latest report, the highest since September 2007 when the headline figure sat at 23.
The latest survey also handily beat market expectations for a reading of 18.
The report, the broadest indicator of how Japan Inc is faring, marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable.
The mood among major manufacturers-who plan to boost capital spending by 14.1 percent year on year-has now risen for a fourth straight quarter.
The index for non-manufacturers came in at 23, unchanged from the previous Tankan, and sitting at its highest level since the final quarter of 2015.
The upbeat survey underscores how Japan’s prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm.
“The continued improvement in business conditions in today’s Tankan points to robust economic growth,” research house Capital Economics said in a commentary after the report was published.
