BOJ Tankan Likely to Show Rise in Biz Sentiment
Tokyo, March 25 (Jiji Press)--An upcoming Bank of Japan “tankan” survey report is seen showing a third consecutive quarterly improvement in business sentiment among major Japanese manufacturers on export recovery, private think tanks say.
The central bank’s March “tankan” survey, due out April 1, is expected to see the diffusion index on large manufacturers’ sentiment rise to zero from minus 10 in the previous December 2020 report.
The expected reading is the average of forecasts from 15 private research institutes. The index is calculated by subtracting the percentage of companies reporting bad business conditions from that of those seeing good conditions.
All 15 institutions project an improvement in the index. Of them, seven forecast that the index will rise into positive territory for the first time in six quarters.
Exports are picking up on the recovering Chinese economy. In addition, earnings at manufacturers have been supported by a weaker yen since the beginning of this year, according to an analyst at Dai-ichi Life Research Institute Inc.
[Copyright The Jiji Press, Ltd.]