Japan: Business sentiment hits nearly six-year high in Q3
October 1, 2013
According to the Bank of Japan's quarterly TANKAN business survey, sentiment among large manufacturers jumped to its highest level since Q4 2007, suggesting that Japan's economic recovery is well on track. A positive reading means that optimists outnumber pessimists. The index jumped from 4 points in the second quarter to 12 points in the third quarter, beating market expectations that saw the index inching up to 7 points.
Confidence in non-manufacturing industries improved further, increasing from 12 points in the second quarter to 14 points in the third quarter. As a result, the index now sits at the highest level registered since Q4 2007.
Going forward, large enterprises in the manufacturing sector anticipate conditions will be even more positive; the forward-looking forecast index rose to 11 points in the third quarter (Q2: 10 points), which represents the highest level since Q4 2007. Meanwhile, large manufacturers forecast the Japanese yen to trade at 94.5 JPY per USD by the end of the fiscal year 2013.