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The
Bank of Japan survey put the benchmark index at plus-13 for the
July-September quarter, the same from the previous survey
conducted for April-June.
A positive number means more companies said they were optimistic
about business conditions than those feeling pessimistic.
The index for large nonmanufacturers stood at plus-34, up from
plus-33 the previous quarter.
The results were in line with analyst forecasts.
Japan’s economic growth is thought to be on relatively solid
ground, managing to grow despite pressures from a declining
workforce, a weakening currency and deflationary pressures that
previously dragged on for years.
But recent data show average wages are holding up or in some
sectors rising, adding to market optimism. Tourism, which brings
in foreign revenue, is booming, now that restrictions related to
the coronavirus pandemic were lifted.
The tankan is among the data being closely watched to show what
the central bank might do on interest rates. The Bank of Japan
ended negative interest rates in March and in July raised its
short-term policy rate to 0.25%.
The Bank of Japan hopes to continue to raise rates if conditions
appear to back the view that its 2% inflation target is being
maintained.
The latest tankan showed that Japan’s companies expect consumer
prices to rise 2.4% a year from now, the same rate as they said
in the survey three months ago.
Japan’s economy, the world’s fourth largest, grew at an annual
rate of 2.9%, according to government data, as wage growth and
consumer spending kept growth going, despite risks from
slowdowns in the Chinese and U.S. economies.
Political change is also a factor. Prime Minister Fumio Kishida
resigned in a planned move Tuesday before his likely successor
Shigeru Ishiba takes office later in the day. Major economic
policy changes are not expected, however.
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