TOKYO – The latest “tankan” survey released by the Bank of Japan shows that business sentiment among Japan’s large manufacturers remained unchanged in the July-September quarter, with a benchmark index of plus-13. This figure is the same as the previous quarter’s results from April-June.
The index for large nonmanufacturers improved slightly to plus-34, up from plus-33 in the previous quarter, aligning with analyst predictions.
Despite challenges such as a declining workforce, weakening currency, and previous deflationary pressures, Japan’s economy is showing resilience. Recent data indicates growth in average wages, rising levels of consumer spending, and a booming tourism industry following the lifting of pandemic-related restrictions.
The tankan survey is one of the indicators central banks use to gauge interest rate decisions. The Bank of Japan recently raised its short-term policy rate to 0.25% and hopes to further increase rates in line with maintaining its 2% inflation target.
Companies in Japan are optimistic about future consumer prices, expecting a 2.4% increase in the next year. The country’s economy grew at a rate of 2.9% annually, driven by wage growth and consumer spending, amid global economic slowdowns.
In other news, Prime Minister Fumio Kishida’s resignation and the expected appointment of Shigeru Ishiba as his successor are unlikely to result in major economic policy changes.
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