Tokyo, Japan (4E) – Japanese manufacturers’ business sentiment improved in the quarter ended September, according to the closely monitored Tankan survey by the Bank of Japan (BoJ) published on Tuesday.
The quarterly Tankan index for large manufacturers climbed to 12 in September from a reading of 4 in June, according to the BoJ in Tokyo. The result surpassed the 30 economists’ median estimate of 7 in a survey by Bloomberg News.
The second-quarter survey result is more closely watched than usual because it is among the final economic indicators that Japanese Prime Minister Shinzo Abe has said he would review to find out the health of the economy and to see if it is robust enough to increase the consumption tax from 5 percent to 8 percent next year. Mr. Abe is expected to make an announcement later about plans to proceed with the tax increase.
The improvement in the Tankan survey shows strength in the Japanese economy after a revised up second-quarter growth rate was announced on Sept. 9. The Nikkei 225 stock index gained 40 percent in 2013, boosting both consumer sentiment and business confidence.
The world’s third biggest economy has been on the rebound in the last few months largely because of the BoJ’s aggressive monetary stimulus and the Abe government’s fiscal stimulus measures.
Data from the report was taken from the central bank’s Aug. 27 to Sept. 30 survey of 10,548 companies, with a response rate of 99.3 percent.