Japan: Business confidence reaches joint-highest level in three years in Q4
Latest reading: According to the quarterly Tankan survey, business confidence among large manufacturers rose to 14.0 in Q4 from 13.0 in Q3. Consequently, the index moved further above the 0-threshold, pointing to robust optimism among large manufacturers. Q4’s result marked the joint-best performance since Q4 2021 and slightly exceeded market expectations, suggesting that the interest rate hikes by the Bank of Japan since April may not be significantly affecting economic activity.
Economists often use the Tankan survey to chart economic trends, with the indicator considered less volatile than GDP statistics.