ZCZC
BCN-05
JAPAN-LARGE MANUFACTURER-TURNS POSITIVE
Japan’s large manufacturers’ sentiment turns positive for 1st time in 6 quarters
TOKYO, April 1,2021 (BSS/XINHUA)- Japan’s large manufacturers’ business confidence turned positive for the first time in six quarters in March, the Bank of Japan (BOJ) said in its Tankan report on Thursday.
The sentiment index rose to 5 from minus 10 in December, marking the third successive quarter of increase and recovering to levels prior to the COVID-19 pandemic, as optimism grew among firms for the economy to recover, the BOJ’s survey showed.
The latest reading compares to median analysts’ forecasts for the sentiment index to read minus 2.
The index for large non-manufacturers, meanwhile, rose to minus 1 from minus 5, again rising for the third straight quarter, the BOJ also said.
Looking ahead, however, the sentiment index for large manufactures is expected to fall to 4 in the months ahead, the survey showed, while the index for non-manufacturers is forecast to remain unchanged at minus 1, the central bank said.
The indexes reflect the percentage of companies reporting favorable business conditions minus the percentage of those reporting unfavorable conditions.
The BOJ’s Tankan survey is regarded as a leading indicator of Japan’s economic health and serves as a guide for the central bank regarding the future direction of its monetary policy.
The latest Tankan results will factor into the BOJ’s monetary policy henceforth, be it staying pat on its current policy, deploying further easing measures, or rolling back measures in the best interests of supporting the world’s third-largest economy.
The central bank’s latest Tankan survey polled 9,478 firms and had a 99.0-percent response rate.
BSS/XINHUA/TIT/1705HRS