Tokyo, Oct 1 (efe-epa).- Confidence in the Japanese economy improved in September compared to June for the first time since December 2017, and after having fallen in the previous quarter to its lowest level in 11 years, the Bank of Japan (BoJ) reported Thursday.
The confidence index among large Japanese manufacturers rose to minus 27 in September, according to the central bank’s quarterly Tankan survey.
The large conglomerates of the Asian country were less pessimistic last month than three months earlier, when in June the index stood at minus 34, the worst level recorded since June 2009.
The business pessimism is attributed to concerns about the impact of the COVID-19 pandemic on the global economy and, specifically, its effects on the domestic supply chain and demand.
The improvement is below analysts’ expectations, although the confidence index among the main non-manufacturing companies was more in line with forecasts and rose from minus 17 to minus 12.
The Tankan survey measures the percentage of companies that believe business conditions are favorable, minus those who believe otherwise, and is seen as a significant advance on Japan’s economic growth.
Japan’s private sector has been hit hard since the beginning of the year due to the COVID-19 pandemic, which, in addition to deteriorating the global situation, has caused a contraction in domestic demand, the main pillar of Japanese gross domestic product.
Faced with this situation, the BoJ has implemented a series of measures to support companies, including a loan plan and other liquidity lines for a total of 110 trillion yen ($1.04 trillion). EFE-EPA