Japanese business confidence rises for 1st time in nearly 2 years

By Gokhan Ergocun

ISTANBUL (AA) – Business confidence among Japan’s major producers increased for the first time in nearly two years, the latest survey showed on Monday.

The Tankan survey, a short-term economic survey of Japanese enterprises conducted by the Bank of Japan, is widely regarded as the most comprehensive indicator of how the country's businesses are faring.

According to the state broadcaster NHK, the mood among major businesses was at five in the second quarter, up four points from the previous survey in March.

It said more businesses are optimistic about the country's business conditions.

The improvement in sentiment stemmed from a recovery in auto production as shortages of chips and other parts eased.

Meanwhile, the Japanese manufacturing sector saw a renewed downturn in operation conditions in June, according to data provider S&P Global.

The purchasing managers index (PMI) of the Japanese manufacturing sector was at 49.8 in June, down from 50.6 in May.

"The headline figure was pushed back into contraction territory following declines in both output and new orders," it added.