TOKYO, April 1 (UPI) -- The Bank of Japan reported Monday that corporate confidence stopped falling for the first time in five quarters, noting there was a modest economic recovery in the country since June.
The "tankan" quarterly survey of corporate sentiment resulted in minus 38 for the main index of larger-sized manufacturers. The figure was unchanged from the previous quarter. An index in a negative threshold means that the number of pessimistic companies outnumbered optimistic ones.
Still, the 8,651 companies surveyed on average expect a slight upturn in conditions by June, particularly as the earlier-than-expected rebound in the U.S. economy is seen to boost Japanese exports. The index assessing the outlook for the next three months came in at minus 27.
However, larger-sized companies are expected to cut down on capital expenditure by 8.4 percent over the next quarter, while smaller-sized ones are seen to cut down spending by 16.2 percent.
Still, Japanese government officials were quick to state that the latest Tankan data suggest the worst could be over for the country's economy.
Following the release of the central bank's report earlier in the day, Vice Finance Minister Toshiro Muto said at a news conference the government expected the growth outlook to be brighter in coming months.
"The survey showed that companies expect sales and profits to improve to some extent in the next fiscal year," Muto said. "I believe corporate activity is heading in a good direction."
