Thursday, 30th September 2010
In Business In Japan,
Japan's economic confidence continues to rise
Confidence within the Japanese business sector has continued to rise, according to a new survey.
The Tankan study of 11,000 companies, conducted by the central bank, is carried out every three months and its most recent results show a rise in confidence from one to eight points.
However, the long-term forecasts are not quite as positive, with many manufacturers expecting confidence to turn negative towards the end of the year – especially if the yen remains strong on the international currency markets.
Richard Jerram, head of Asian economics at Macquarie Securities, told AP that the country has undergone a strong recovery over the past 18 months but this could be reversed in the coming months.
He added: "The momentum is fading quite quickly and there are concerns that the yen strength could tip it back down again."
Meanwhile, finance minister Yoshihiko Noda has called on the government not to issue any new bonds ahead of the country's additional budget.
Written by Susan Ballion.