Japan Big Makers’ Sentiment Improves for 1st Time in 7 Quarters

Jiji Press

11:44 JST, July 3, 2023

TOKYO, July 3 (Jiji Press) — Business sentiment among large manufacturers in Japan improved for the first time in seven quarters in April-June, the Bank of Japan’s “tankan” survey showed Monday.

The headline diffusion index for large manufacturers’ current business conditions stood at plus 5 in the June survey, against plus 1 three months before, the central bank said.

The latest reading exceeded the median forecast of plus 3 in a Jiji Press survey of 19 economic research institutes. The DI represents the percentage of companies seeing good business conditions minus those feeling the opposite.

The current business condition DI for large nonmanufacturers rose to plus 23 from plus 20, marking the fifth straight improvement.

The business outlook DI toward September came to plus 9 for large manufacturers and plus 20 for large nonmanufacturers.

Large companies’ capital spending in fiscal 2023, which started in April, is forecast to grow 13.4 % from the previous year.