Business sentiment among Japan’s large manufacturers remains stable

TOKYO, Oct. 1 (Xinhua) — Japanese large manufacturer’s business sentiment remained stable as a recovery in the IT sector offset impacts from worsening production in the auto industry, central bank survey data showed on Tuesday.
The sentiment index for large manufacturers stood at plus 13 in the July-September period, unchanged from the previous quarterly figure, according to the quarterly Tankan survey by the Bank of Japan.
A positive number indicates that more companies are optimistic about business conditions than those pessimistic.
The stability was supported by a recovery in the IT sector, with semiconductors and electrical machinery seeing significant improvements.
While large manufacturers maintained their overall sentiment, the automobile sector saw the index sliding by 5 points to plus 7 as natural disasters such as typhoons halted production. However, the sector’s future outlook index is expected to improve by 2 points to plus 9.
Non-manufacturing sectors showed a slight improvement, with the index rising by 1 point to plus 34 on the back of strong demand for summer goods. Inbound tourism also boosted retail and hospitality during the period. ■