Japan Tankan: Large Manufacturers' Confidence Hits 8-Year High in September

Key Facts

1Japan's large manufacturers' business conditions DI rose from +22 to +24 in September, the strongest reading since March 2018.

2The survey showed improved sentiment among medium and small manufacturers, indicating a broad-based economic recovery.

Japan's large manufacturers' business conditions DI rose from +22 to +24 in September, marking the strongest reading since March 2018. ActionForex reported that the Bank of Japan's Tankan survey showed an improvement in both domestic and overseas supply-demand conditions, with the domestic DI moving from -4 to -1.

The survey indicated a broad-based economic recovery as sentiment among medium-sized manufacturers improved from +17 to +23, while small firms rose from +9 to +14. Despite the manufacturing strength, the large non-manufacturing DI slipped from +37 to +35, while long-term inflation expectations remained firm above the central bank's 2% target, with the five-year outlook at 2.5%.