Tokyo, Dec 13 (IANS) The Bank of Japan (BOJ) survey released on Friday revealed mixed business sentiment among Japan's large companies, with manufacturers showing signs of recovery and non-manufacturers facing notable challenges.
The business index for large manufacturers improved for the first time in two quarters, rising by 1 point to plus 14 for the October-December period, according to the quarterly Tankan survey by the Bank of Japan.
A positive number indicates that more companies are optimistic about business conditions than those pessimistic, reports Xinhua news agency.
The growth was attributed to a recovery in automotive production, previously impacted by certification issues and increased demand for semiconductor manufacturing equipment driven by artificial intelligence advancements.
Despite the positive developments, large non-manufacturers experienced a slight decline in sentiment, with the business index slipping to plus 33 from plus 34 in the previous quarter, marking the first drop in two quarters.
Retail sentiment dropped significantly, reflecting weaker demand for fall and winter clothing following extended late-summer weather conditions.
Accommodation and food services also reported a decline in sentiment, despite strong inbound tourism, due to rising labour costs and material prices.
Furthermore, the index for large manufacturers is expected to fall by 1 point to plus 13 in the next three months, reflecting cautious sentiment amid concerns about slowing overseas demand and potential policy changes under US President-elect Donald Trump.
Trump recently threatened to impose tariffs on goods imported from key US trading partners.
Meanwhile, this might lead to US consumers adjusting their behaviour as the holiday season progresses and the new year begins amid concerns about new tariffs. The adjustment of consumers' behaviour would depend on the item and the expense, based on what they're seeing and hearing in the external environment.
US holiday spending in the last two months of 2024 is expected to reach record levels and will grow between 2.5 per cent and 3.5 per cent over 2023, totalling 979.5 billion to $989 billion, according to forecasts by the NRF.