Business confidence at large manufacturers rose to a two-year high in the three months through September, according to the Bank of Japan's latest "tankan" survey, despite forecasts by economists it would either remain flat or slightly decline.
The BOJ said Monday its business sentiment index rose for the second straight quarter, increasing to 24 for large manufacturers from 21 in July -- the highest rise since September 2004, when the index hit 26. Business sectors including industrial machinery, electrical machinery, and iron and steel helped push up the figures.
However, large manufacturers appeared to be less confident about the coming quarter. In the three months to December, the index is projected at 21, down 3 points from the current index. Many economists expect business in the United States to continue to slow, dealing a negative blow to Japan's economy.