A recent government survey reveals that major Japanese companies continue to maintain a positive outlook for the second consecutive quarter. This trend is largely driven by growing demand in the semiconductor and service sectors.
For the July-September period, the business conditions index reached 5.1, reflecting optimism among companies. A figure above zero suggests that a majority of firms believe business conditions are improving.
The survey, conducted by the Finance Ministry and the Cabinet Office, gathered responses from approximately 11,000 companies. Manufacturers reported a business conditions index of 4.5, buoyed by strong demand for semiconductors, among other factors. Meanwhile, non-manufacturers, including restaurants and hotels, saw their index rise to 5.4. These businesses benefited from an increase in customers and successfully passed on higher costs through price adjustments.
While officials from the Finance Ministry interpret these results as a sign of steady economic recovery, they also warned of potential challenges. Risks tied to the global economy and the ongoing impact of price hikes will require careful monitoring in the months ahead.
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