TOKYO : Japanese business sentiment improved in the second quarter as easing supply constraints and the removal of pandemic curbs lifted factory output and consumption, a central bank survey showed, a sign the economy was on course for a steady recovery.
The headline index measuring big manufacturers' mood stood at plus 5 in June, bouncing back from a two-year low of plus 1 hit in March in a sign firms were recovering from the hit from rising raw material costs and supply disruptions. The reading, which compared with a median market forecast for plus 3, was the highest since December 2022.
Large firms plan to ramp up capital expenditure by 13.4 per cent in the current fiscal year ending in March 2024, exceeding the 3.2 per cent increase projected in the March survey. The increase compared with a median market forecast for a 10.1 per cent rise.