The release of the Bank of Japan Tankan (September survey) shows that business sentiment and capital investment plans remain firm. Meanwhile, inflationary pressures are still considered likely to remain elevated.
Following the Bank of Japan Tankan (September survey), business sentiment as assessed under current conditions and the status of capital investment plans have been described as generally firm.
The survey is considered to suggest, through indicators such as the DI that show corporate business sentiment, that the improving trend in sentiment, particularly in the manufacturing sector, may continue.
Meanwhile, inflationary pressures remain elevated, and the view has been expressed that cost pressures may persist over an extended period, against a backdrop of wage trends and fluctuations in raw material costs.