TOKYO, Japan (AFP) — Confidence among Japan’s biggest manufacturers is at an 11-year high, a key central bank survey showed Friday, as the world’s number-three economy picks up pace.
The Bank of Japan’s Tankan report — a quarterly survey of more than 10,000 companies — showed a reading of 25 among major manufacturers in its December survey, the highest since its December 2006 poll.
The report, the broadest indicator of how Japan Inc is faring, marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavorable.
The mood among major manufacturers has now risen for a fifth straight quarter.
Buoyed by a favorable outlook, the firms say they plan on average to boost capital spending by 10.2 percent year-on-year, according to the survey.
The index for non-manufacturers came in at 23, unchanged from the previous survey in October. This is the highest level since the final quarter of 2015.
The upbeat survey underscores how Japan’s prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm.
© Agence France-Presse
