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Optimistic Mood of Japanese Manufacturers in Q4


December, 11 2017
watermark Economic news

Major manufacturers in Japan have a positive outlook regarding the economic condition of the country during the months of October to December based on the survey issued by the Japanese government on Monday. This further showed another optimistic sign for the economy’s increasing growth.

The business survey index (BSI) of large manufacturers came in at plus 9.7, which is higher than plus 9.4 results during the third quarter, as shown in the joint survey published by the  Economic and Social Research Institute and the Ministry of Finance.

The manufacturer’s mood perked up by the sluggishness of the Japanese yen along with the boost in the  Nikkei stock average prior the polling period. While the sales and profits also rise driven by auto manufacturers and mobile phone electronics parts makers.

The figures were issued before the Bank of Japan's assessment towards the "tankan" survey of corporate sentiment scheduled on Friday. It is projected to display confidence among large businesses in more than ten years.

The resilient mood corresponds with the record of economic expansion which indicates an increase in the gross domestic product by  2.5 percent YoY in Q3 for seven consecutive quarters. This is the longest growth according to data since 1994 which was led by the capital expenditure.

Moreover, large firms are planning to lift capital spending to 10.7 percent for the first half of the fiscal year that will end up in March. The rate is higher than its initial estimate of 8.9 percent.


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