Posted 10/2/2023, 1:36:36 AM

Japan Business Sentiment Improves in Q3 on Domestic Demand Despite Global Slowdown

Japan's business sentiment improved in Q3 according to a Bank of Japan survey, suggesting conditions for economic growth are in place despite global slowdown.
Big manufacturers' confidence index rose to 9 from 5, beating forecasts. Big non-manufacturers' index hit 27, highest since 1991.
Firms plan to increase capital spending by 13.6% this fiscal year. Labor market is tight with shortages and wage pressures.
Companies expect to pass on higher costs to consumers. Rebound in auto output and lower material costs also lifted sentiment.
Sluggish overseas demand clouds outlook. Firms see inflation holding steady around 2-2.5% over next 5 years.

reuters.com

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