Tokyo, Dec 14 (efe-epa).- Confidence in the Japanese economy among the country’s large manufacturing companies improved on a quarterly basis over the previous quarter that ended in September, the Bank of Japan (BoJ) reported Monday.
The confidence index among large Japanese firms reached minus 10 in December, an improvement over the minus 27 recorded in September, according to the central bank’s quarterly Tankan survey.
This is the second consecutive quarterly improvement in business sentiment after it improved in September for the first time since December 2017.
The Tankan measures the difference in the percentage of companies that believe business conditions are favorable and those who believe otherwise and is considered an important guage of Japan’s economic growth.
The business sentiment survey was conducted between Nov. 11 and Dec. 11 amid a third wave of the Covid-19 pandemic, which has had a devastating impact on the Japanese economy.
Sentiment among large non-manufacturing companies also improved with the confidence index rising to minus 5 from the minus 12 recorded three months ago.
The data reflects the progressive improvement that recovery of trade with China and the United States, Japan’s two main trading partners, is having on the Japanese economy.
The sector that showed the most significant improvement was the automobile industry as it went from a confidence index of minus 61 in September to minus 13 in the data recorded this month.
The result of the survey beats analysts’ expectations and Tokyo Stock Exchange stocks reacted positively to the information with the Nikkei index posting a 0.70 percent gain 20 minutes after the start of trading. EFE-EPA