Monday, 3rd October 2011
In Business In Japan,
Sentiment among manufacturers begins to improve
Manufacturers in Japan are beginning to recover their confidence in the aftermath of the twin-tragedies of March 11th this year.
Major manufacturers have anticipated an improvement in market conditions over the next three months, the Bank of Japan's Tankan survey revealed.
The study, conducted last month, showed big manufacturers' sentiment index stood plus two compared to minus nine in June.
However, the industry also remained cautious amid uncertainty in the US and Eurozones, as well as the rising value of the yen.
Hideo Kumano, chief economist at Dai-ichi Life Research Institute, said: "The headline figures indicate a moderate recovery at manufacturers. But if you look carefully you can see the heavy burden of a higher yen," Reuters quoted.
The expert added that additional easing measures would be taken if the dollar falls below, perhaps, 75 yen.
Meanwhile, sentiment among major non-manufacturers improved by six points during September to plus one.
Last week, it was revealed an additional fund had been granted by the Japanese government to slow down the strengthening of the yen.
The move was made to prevent further dips in the country's economy.
Posted by Susan Ballion