Japan: Business confidence recovers slowly
October 3, 2011
Sentiment among major manufacturers continues to recover, as conditions gradually return to normal following March's disasters. According to the quarterly TANKAN business survey elaborated by the Bank of Japan, sentiment among large manufacturers jumped to plus 2 points in the third quarter, which represents a significant improvement compared to the minus 9 points observed in the second quarter. The print was in line with market expectations but, nevertheless, remains below the plus 6 points observed in the first quarter. A positive number means optimists outnumber pessimists. Furthermore, despite rising headwinds for Japanese exporters, large enterprises in the manufacturing sector anticipate conditions will continue improving next quarter, with the forward-looking forecast index rising to 4 points.