Japan Manufacturers' Sentiment Surges to Highest Level in Nearly Two Years
Japan's large manufacturers are feeling more optimistic about their business conditions, according to the latest Bank of Japan survey. The quarterly Tankan survey showed that sentiment among big Japanese manufacturers jumped in the quarter to June, with the index hitting its highest level in nearly two years.
The index rose to 'plus 4' from 'minus 8' in the previous quarter, representing the percentage of firms saying business conditions are good minus those saying they are bad. This is the first time the poll has hit positive territory since September 2011.
The strong results come after Japanese factories put in an unexpectedly strong performance in May, which suggests that the world's number 3 economy is picking up pace. The survey is used by the central bank to formulate policy, and these findings may give Prime Minister Shinzo Abe more momentum for his economic plans, known as 'Abenomics', ahead of parliamentary elections this month.