In a significant turnaround, Japan’s Business Survey Index (BSI) for large manufacturing conditions soared to 4.5 in the third quarter of 2024, up from the previous indicator of -1.0 in the second quarter. This notable rise, reported on 11 September 2024, marks a positive shift in Japan's manufacturing sector.
The previous quarter's negative value had investors and industry leaders concerned about the potential stagnation in Japan's manufacturing market. However, the latest figures indicate a robust recovery and suggest that manufacturing activities and business conditions for large manufacturers are improving.
Analysts attribute this spike to a variety of factors, including increased domestic demand, strategic government policies, and possibly a stabilization of global supply chains. This positive movement is expected to bolster confidence in Japan’s economic outlook for the remainder of the year and beyond.
