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* Big Manufacturers Sentiment Index +18 vs f’cast +13 – Tankan
* Big non-manufacturers’ sentiment improved slightly in Q3
* Large firms expect capital expenditure to grow by 10.1% this fiscal
TOKYO, Oct 1 (Businesshala) – Japanese business confidence improved in the three months to September, a central bank survey showed on Friday, a sign that the economy was steadily emerging from recession caused by the coronavirus pandemic.
Large companies expect capital expenditure to rise by 10.1% in the current fiscal ending March 2022, the survey showed, adding that the central bank’s outlook supported by strong corporate sector activity may offset some weakness in consumption Will go
The survey bodes well for Fumio Kishida, who will replace Prime Minister Yoshihide Suga next week with a mandate to lift the economy out of pandemic-induced apathy and distribute more money to households.
The Bank of Japan’s (BOJ) typology survey showed that the headline index, which gauges the sentiment of large manufacturers, stood at a plus 18 in the third quarter, up from a plus 14 in the previous quarter.
This was compared to the average market forecast for Plus13.
The survey showed the sentiment index for large non-manufacturers rose from plus 1 to plus 2 in June, while the average market forecast was for a flat reading.
This suggests that the big manufacturers expect the sentiment to be worse three months ago.
The survey will be one of the factors when the BoJ meets on October 27-28 for a rate review and revises its quarterly growth and inflation projections.
Strong exports, driven by solid global demand, have helped offset weak consumption and pulled Japan’s economy out of a severe recession caused by the pandemic last year.
But chip shortages and supply disruptions caused by Asian factory closures have hit Japanese manufacturers’ output, threatening to derail the country’s fragile recovery.
The central bank will closely examine the results of the Tankan survey at its next policy-making meeting on October 27-28, when it will give growth and inflation projections. (Reporting by Tetsushi Kajimoto and Leika Kihara; Editing by Sam Holmes)