The Strategist

Japanese industrial business sentiment improves for the first time in seven quarters

07/03/2023 - 09:36

The car market's return to pre-pandemic levels is one of the primary factors cited as a good trend in the industry.
Major Japanese industrial enterprises' attitude increased for the first time in seven quarters, shows the Bank of Japan (BoJ)'s Tankan index, which is used to assess inflation.

This index, which measures the discrepancy between the shares of businesses that offered favorable and unfavorable assessments of the state of the economy, increased by 4 points to 5 from April. Observers claim that the general improvement in the environment, along with favorable trends in the vehicle market, which is recovering to pre-pandemic levels, were the main causes of the shift in the sentiment.

The Tankan index for non-manufacturing firms, meanwhile, grew from 20 to 23 in the most recent quarter, marking the sixth quarter in a row of growth. This is mostly attributed to the pandemic's diminishing effects and a rebound in economic activity following the removal of the coronavirus restrictions.