Japanese Manufacturers' Confidence Rises on AI Demand
The Bank of Japan's Tankan survey revealed that business confidence among major Japanese manufacturers rose to 24 in September from 22 three months earlier, driven by strong demand related to artificial intelligence and semiconductors.
The sentiment index measuring confidence among companies such as those in the auto and electronics sectors improved for the sixth consecutive quarter but fell short of the average market forecast of 26. The key index is expected to fall to 21 in three months, according to the survey.
'Many companies have made progress in passing higher costs on to customers,' a BOJ official said at a briefing. However, companies also continued to cite higher costs and weaker business sentiment as negative effects of the situation in the Middle East.