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Japan’s producers are cheerful about the future as economy rises

In August Japanese producers’ expectations reached their peak in ten years, with materials manufacturers leading, as a survey by Reuters discovered. This is another important signal of growing revival of the economy.

A survey that Reuters conducts each month, following the Bank of Japan's crucially important quarterly tankan, revealed that the service sector feelings dropped but anyway kept at quite high a level, emphasizing steadiness in internal demand which was the leading factor of growth in the April-June period.

Business mood could wane a bit in the coming 3 months, showing a possible return from the strong 4% annualised rise in the second quarter led by individual consumption and capital spending.

The index of sentiment for producers went up to 27 in August from previous 26, according to the poll of over 500 big and middle firms, taken in the first half of August, with 265 companies giving responses.

These were the best results since the middle of 2007, right before the outburst of the last financial crisis. One textile company’s manager pointed out in the survey that the world economy with a focus on the U.S. and China is on a firm ground.

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