Big Japanese manufacturers see improving confidence

Sentiment among major Japanese manufacturers turned positive in September as firms recovered from the impact of the traumatic events in March, Bank of Japan (BoJ) said in its Tankan survey released today.

But, even as the figures returned to positive levels for the first time following the earthquake, tsunami and nuclear crisis, the outlook still remained below pre-disaster figures.

According to analysts, worries over a strong yen, the eurozone debt crisis and a slowdown in the US were responsible for the depressed outlook.

Sentiment of large manufacturers rose in September to two from a negative nine in June, according to the quarterly survey. This was slightly lower than a market forecast of three, while the sentiment of medium and small-sized firms remained negative.

The figures represent the percentage of companies saying business conditions were good minus those saying conditions were bad, with a positive rating showing optimists outweighed pessimists.

The survey, which the Bank of Japan (BoJ) refers while formulating monetary policy, saw large manufacturers project a reading of four in December, pointing to continually improving conditions.