Business confidence turns positive for 1st time in 4 quarters

TOKYO, Sept. 12 Kyodo -
Business sentiment at large Japanese firms turned positive in the three months through September for the first time in four quarters, reflecting the easing negative impact on the Japanese economy from the massive earthquake and tsunami in March, government data showed Monday.
The index of sentiment among companies capitalized at 1 billion yen or more rose to plus 6.6 from the previous quarter's minus 22.0, returning to positive territory for the first time since the July-September quarter of 2010.
The sharp improvement reflects a pickup in production following restoration of the nation's supply chain disrupted in the wake of the March disaster.
As for the outlook, the index is projected to rise to 8.1 in the October-December period and 6.0 in the following quarter, according to a joint survey by the Finance Ministry and Cabinet Office.
The figures were calculated by subtracting the percentage of companies reporting deterioration in business conditions from those observing improvement.
The current index for small and medium-sized firms stood at minus 22.2, up from minus 41.1, showing smaller companies' sentiment is improving but they remain far less confident than larger companies.
The index of large manufacturers rose to plus 10.3 from minus 23.3, boosted by a sharp improvement in sentiment among vehicle and auto parts makers following the restoration of the supply chain and increased demand from overseas.
Backed by robust demand for parts for smartphones, sentiment among information and communication equipment makers also improved sharply.
The index of large nonmanufacturers went up to plus 4.6 from minus 21.4.
The survey was conducted Aug. 15 on 15,504 companies, of which 12,255, or 79.0 percent, gave valid responses.