Japan's economic recovery is spreading across a broader spectrum of industries, according to the Bank of Japan. The latest "tankan" survey on business sentiment, which was conducted in June, showed large manufacturers feeling more confident about business conditions than at any time since the asset-price bubble burst 13 years ago. What's more, sentiment in the small-business sector turned positive for the first time in as many years.
The confidence index for large manufacturers climbed to plus 22, up 10 points from March when the previous survey was taken, while the figure for small companies, including both manufacturers and nonmanufacturers, rose to plus 2. Sentiment in the sluggish nonmanufacturing sector also improved, although "pessimists" still outnumbered "optimists."
Overall, the economy has been recovering steadily since it hit bottom in January 2002. The recovery started with large manufacturers, then spread gradually to include large nonmanufacturers and small companies. A major contributory factor was the surge of exports, particularly to the United States and China.