The Bank of Japan’s Tankan index, an indicator measuring business confidence among large manufacturers, rose to +17 in the second quarter of 2017 from +12 in the previous quarter. That is the highest level over the past three years.
Analysts had expected the indicator to rise to +15.
Sentiment rose most strongly in the petroleum and coal sectors. Most pessimistic sentiment was registered in the forestry and wood product sectors.
The Tankan index is projected to fall to +15 in the third quarter.
Major companies plan to boost their capital investments by 8% during the next fiscal year starting from April 1.
In the reporting period, the indicator of confidence of Japanese large non-manufacturing companies rose from +20 to +23, matching analysts’ expectations.
