Business News

Survey shows Japanese business mood edging up

Apr 1, 2011, 0:11 GMT

Tokyo - Business sentiment among Japan's big manufacturers has improved slightly, the Bank of Japan's quarterly Tankan survey showed Friday.

The index for big manufacturers for the January-March period was up 1 point to plus 6, the first rise in two quarters, the central bank's closely watched survey showed.

The Tankan indices give the percentage of companies saying business conditions are good, minus those who say they are poor. Negative readings indicate that the majority of respondents feel the business environment is bad.

The index of large non-manufacturers' mood stood at plus 3, also up slightly from plus 1 in the previous quarter, the survey showed.

But large companies in both the manufacturing and non- manufacturing sectors are to cut capital investment by 0.4 per cent in this new financial year, which ends March 2012, from the previous year, according to the survey.

Business mood among medium-sized manufacturers declined to minus 4 from plus 1 three months ago, while the index for small manufacturers inched up to minus 10 from minus 12 in the previous quarter, the survey showed.

Analysts said the survey did not reflect the impact of Japan's earthquake and resulting tsunami because its deadline was March 11, the day that the twin disasters struck. Some 72 per cent responded before the natural disaster, Kyodo News reported.

The central bank said it would separately release data Monday that specifies the impact of the disasters and the ongoing nuclear crisis.

The magnitude-9 earthquake and tsunami killed about 11,500 people. With more than 16,000 people still missing, the death toll is expected to climb significantly.

The earthquake forced many manufacturers including Toyota Motor Corp and Sony Corp to halt production.

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