TOKYO, July 2 (AFP): Japanese business confidence held steady close to a two-year high and firms set aside more cash to invest in new plant and equipment, a key survey showed today, underpinning confidence in the economy.
The Bank of Japan's closely watched "Tankan" survey showed the business sentiment index for major Japanese manufacturers at 23 in June, unchanged from the previous survey in March and in line with market expectations.
A positive reading means confident firms outweigh the pessimistic ones. A figure of 23 indicates generally upbeat sentiment and is within sight of December's two-year peak of 25.
Analysts maintained their views that the central bank is likely to raise interest rates again sometime in the next few months as the economy recovers from its long slump.
"In our view there has been no big surprise in this Tankan and so we continue to expect the BoJ to raise interest rates in September," said UBS Securities economist Akira Maekawa. Others predicted a hike in August.
For the quarter to September, the index for large manufacturers is projected to fall one point to 22.
The Tankan survey also showed confidence among major non-manufacturers holding steady at a figure of 22 over the three months to June.
Major Japanese companies reported plans to ramp up their capital investment as they put some of their bumper profits back into their production and other facilities, although investment is seen rising at a slower pace than last year.
Japanese business confidence near two-yr high
FE Team | Published: July 03, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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