BOJ Survey: Japanese Business Confidence Improves Amid Inflation Concerns
The Bank of Japan's quarterly tankan survey revealed that Japanese business confidence improved in the three months to September, surpassing market forecasts. The headline index measuring big manufacturers' sentiment increased to +24 from +22 in June, while non-manufacturers' sentiment stood at +35 after a +37 reading in June.
The data suggests the economy is withstanding the impact of the Middle East conflict and supports further interest rate hikes by the BOJ. The central bank raised rates to a 31-year high last month, signaling its shift towards preventing inflation from exceeding its target.
According to the tankan survey, companies expect inflation to reach 2.6% in three years and 2.5% in five years, indicating a prolonged period of inflation above the BOJ's 2% target.