 Japan's economy has shown signs of recovery |
Business confidence hits a five month high in June, a sign that manufacturers are the driver behind economic growth, the Reuters tankan survey has shown. Japan's major firms are more confident now than they were in May, helped by overall global economic growth and the weaker yen, boosting exporting firms.
However, non-manufacturers' confidence, including services, fell for the second consecutive month.
Analysts said the rise did not make an interest rate increase more likely.
Maiko Nogushi, senior economist at Daiwa Securities said the latest survey "confirmed current conditions of the economy and did not change expectations for Bank of Japan rate hikes in the coming months."
The monthly Reuters tankan survey tracks the much-watched Bank of Japan's tankan, which comes every quarter and will next be issued on July 2.
Tatsushi Shikano, an economist with Mitsubishi said he expected the Bank's survey to echo the fall in the non-manufacturing sector's confidence, prompted by lower consumer spending.
The OECD recently suggested in its world economic forecast that interest rates in Japan could rise, with its economy growing faster than that of the US.
One-Minute World News 
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