Tokyo - Business confidence among large Japanese
manufacturers improved for the first time in more than two years, the
Bank of Japan's Tankan survey showed Wednesday.
Although the index remained in negative territory for four
consecutive quarters, it rose 10 points to minus 48 during the
April-June quarter, compared to the previous quarter, the bank said.
Business confidence among large manufacturers hit a record low in
the January-March period.
The central bank expected the index to improve to minus 30 during
the next three months to September.
The sentiment among major non-manufacturers also rose 2 points to
minus 29 during the reported quarter, the first improvement in more
than two years.
Meanwhile, the sentiment among small businesses continued to
worsen to 49 points, down 2 points from the previous three months.
The index for small non-manufacturers hit the worst level since
September 1998, down 2 points from the January-March period to minus
44 during April-June.
The sentiment among small non-manufacturers was expected to worsen
by 1 point during the next three months.
The index for small manufacturers was unchanged at minus 57, which
was expected to improve to minus 53, according to Tankan survey.
Large companies in both the manufacturing and non-manufacturing
sectors plan to reduce capital spending by an average 9.4 per cent
during the current fiscal year that began in April.
The index shows the percentage of companies reporting favorable
business conditions minus that of firms describing an unfavorable
environment.
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