Japanese business sentiment improved in the second quarter as raw material costs peaked and the removal of pandemic curbs lifted factory output and consumption, a central bank survey showed, a sign the economy was on course for a steady recovery.
Companies expect to increase capital expenditure and project inflation to stay above the Bank of Japan¡¯s 2% target five years ahead, the quarterly tankan showed, offering policymakers hope that conditions for phasing out their massive monetary stimulus may be gradually falling into place.
¡°The tankan confirmed our view that Japan¡¯s economy is on track for a moderate recovery,¡± said Atsushi Takeda, chief economist at Itochu Economic Research Institute.
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