11.12.201701:15:00UTC+00Japan Large Manufacturers’ Morale Improves in the 4th Quarter

Large Japanese manufacturers turned more upbeat about economic conditions in the fourth quarter, a government survey recently revealed.

According to the joint survey by the Ministry of Finance and the Economic and Social Research Institute, the business survey index of sentiment at large manufacturers stood at +9.7, rising from +9.4 in July-September.

The mood was improved by the weaker yen and a 12 percent rise in the Nikkei 225 stock average since the earlier survey period, as sales and profits were propelled higher by auto manufacturers and makers of electronic parts for smartphones.

The upbeat mood comes amid the Japanese economy's record economic growth. Gross domestic product rose to an annualized 2.5 percent in the third quarter for the seventh consecutive quarter of expansion, the longest rising streak in data going back to 1994.

The survey reveals that large manufacturers plan to increase capital spending by 10.7 percent in the current half of the fiscal year ending in March, which is higher from their earlier forecast of an 8.9 percent growth.

The Bank of Japan's closely watched “tankan” survey of corporate morale, set to be released on Friday, is expected to show confidence among large manufacturers at its highest in over a decade.