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MNI POLICY: Sentiment Rises, Solid Capex Plans - BOJ Tankan

(MNI) Tokyo
(MNI) TOKYO

The BOJ's latest Tankan survey shows business sentiment improving and solid inflation expectations among the country's corporations.

Japanese benchmark business sentiment rose over Q3 for the second straight quarter due to eased supply-side restrictions and slowing cost, and pass-through of cost increases despite growing uncertainty over global demand, the Bank of Japan's September Tankan business sentiment survey showed Monday.

The major manufacturer diffusion index (DI) – calculated by subtracting the percentage of companies reporting deteriorating business conditions from those reporting an improvement – stood at +9 in the September quarter, up from +5 in Q2, the highest level since June 2022. The BOJ projects the index to rise to +10 in Q4. A positive figure indicates the majority of firms see better business conditions.

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Japanese benchmark business sentiment rose over Q3 for the second straight quarter due to eased supply-side restrictions and slowing cost, and pass-through of cost increases despite growing uncertainty over global demand, the Bank of Japan's September Tankan business sentiment survey showed Monday.

The major manufacturer diffusion index (DI) – calculated by subtracting the percentage of companies reporting deteriorating business conditions from those reporting an improvement – stood at +9 in the September quarter, up from +5 in Q2, the highest level since June 2022. The BOJ projects the index to rise to +10 in Q4. A positive figure indicates the majority of firms see better business conditions.

Keep reading...Show less