A Bank of Japan tankan survey shows that business sentiment measured by the diffusion index among big manufacturers in the three months through September was plus 8, a rise of seven points from the previous quarter, marking improvement for six consecutive quarters. The diffusion index (DI) represents the percentage of firms reporting favorable business conditions minus that of firms reporting unfavorable environments.
The index among big nonmanufacturing firms was plus 2, also a rise of seven points from the previous quarter and improvement of six straight quarters.
But the survey shows that enterprises are worried about future economic conditions. The DI among big manufacturing and nonmanufacturing firms for three months later is minus 1 and minus 2, respectively. For the first time since December 2008, three months after the collapse of Lehman Brothers Holdings Inc., major manufacturers' sentiment three months ahead is worse than their current sentiment.