Mon, 04 Dec 2023

TOKYO, Oct. 3 (Xinhua) -- Japan's large manufacturers' business confidence improved in the third quarter due to the weak yen and easing supply-side bottlenecks, the Bank of Japan (BOJ)'s quarterly Tankan survey report has shown.

According to the BOJ, the sentiment brightened for the second consecutive quarter.

In the third quarter, the key index measuring confidence among large manufacturers came in at 9 from 5 reported in the previous quarter, the BOJ said in the closely watched report.

The index for large non-manufacturers, including the service sector, meanwhile, increased to 27 from 23 in the previous survey, marking the sixth straight quarter of improvement, according to the Monday report.

Many big companies said they were able to pass on higher costs to consumers, leading to the improvement in the business mood, national news agency Kyodo reported Tuesday, citing a BOJ briefing.

Meanwhile, the index for companies in all sectors, including small and medium-sized firms, came in at 0 during the reporting period compared to negative one in the previous quarter, as small and medium-sized businesses still face mounting pressure.

The indices reflect the percentage of companies reporting favorable business conditions minus the percentage of those reporting unfavorable conditions.

The quarterly-released Tankan survey is regarded as a leading indicator of Japan's economic health and serves as a guide for the central bank regarding the direction of its future monetary policy.

Looking ahead, the BOJ said that over the next three months, manufacturers' sentiment is set to improve slightly to 10, and the mood among non-manufacturers will likely drop to 21.

The BOJ surveyed 9,111 companies nationwide between Aug. 29 and Sept. 30.

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