Japanese manufacturers are increasingly optimistic over the business outlook in months ahead, according to a survey released Tuesday in advance of the expected approval of a sales tax increase.
Results from the Bank of Japan's "tankan" quarterly survey showed large manufacturers were especially upbeat, with a reading of positive 12, up from 4 in the July survey.Prime Minister Shinzo Abe was waiting for the survey's release to go ahead with a long-anticipated decision on increasing the sales tax next year to 8% from the current 5%.
He was expected later in the day to announce the Cabinet's approval of that plan, along with tax breaks and other stimulus meant to counter the dampening effect on consumer demand that is expected to follow the tax hike's implementation next April.
The tankan's results contrast with data for August showing higher unemployment and lower household spending. Improved hiring and wages are needed to spur a rebound in consumer spending to help underpin a sustained recovery after years of stagnation.
He was expected later in the day to announce the Cabinet's approval of that plan, along with tax breaks and other stimulus meant to counter the dampening effect on consumer demand that is expected to follow the tax hike's implementation next April.
The tankan's results contrast with data for August showing higher unemployment and lower household spending. Improved hiring and wages are needed to spur a rebound in consumer spending to help underpin a sustained recovery after years of stagnation.
