Japanese big manufacturers' business confidence improved in the second quarter to hit a two-and-half-year high, a central bank survey showed, a sign solid global demand was helping the economy emerge from the coronavirus pandemic-induced doldrums.
Service-sector sentiment also turned positive for the first time in five quarters, suggesting that the economic recovery was broadening even as Japan struggles to contain a fresh wave of coronavirus infections.The headline index for big manufacturers' sentiment jumped to plus 14 from plus 5 in March, marking the fourth consecutive quarter of improvement and posting the highest level since December 2018, the Bank of Japan's "tankan" survey for June showed on Thursday.
An index gauging big non-manufacturers' mood stood at plus 1, against -1 in the previous survey, marking the highest reading since March 2020. While the curbs have been lifted for most areas, many analysts expect consumption to remain a weak spot in Japan's export-driven recovery as slow vaccinations keep households from boosting spending on leisure and dining out.
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