Business confidence improved for the first time in three quarters and demand for services rose, adding to signs the recession is easing.
Sentiment among large manufacturers increased to minus 13.2 points compared with a record low of minus 66 three months ago, a government survey showed Monday. The tertiary index of money spent on services ranging from phone calls to dining out climbed 2.2 percent in April from March, the Ministry of Economy, Trade and Industry said.
A rebound in production as companies replace stockpiles will help the economy expand this quarter for the first time in a year, economists say. Even so, Bank of Japan Gov. Masaaki Shirakawa is concerned that demand may not pick up enough to sustain a recovery once $2.2 trillion in worldwide stimulus measures fades.