Japan’s large manufacturers returned to pre-pandemic levels thanks to a global economic recovery, including the nation’s biggest trading partners, the U.S. and China. The main index measuring large manufacturers’ sentiment was 5 in March, compared with minus 10 in December. Index represents the percentage of companies who said business conditions were favorable minus those saying conditions were unfavorable.
Figure marked three consecutive quarters of improvement and was better than the forecast for zero from a poll of economists. Index measuring large non-manufacturers’ sentiment was at minus 1, compared with minus 5 in the December survey. Reflecting improvement in business sentiment, big companies plan to increase capital expenditures by 3.0% in the new fiscal year that began Thursday. That compared with a plan for a 3.8% decrease for the previous fiscal year.