TOKYO, July 3 (Xinhua) -- Japan's large manufacturers' business confidence improved in the second quarter, the Bank of Japan (BOJ) said in its quarterly Tankan survey report on Monday.
According to the BOJ, the sentiment reversed its worsening trend in seven quarters, due to the falling energy and resource costs in the international market.
In the meantime, the country's supply-side constraints have eased significantly in fields such as semiconductors, it added.
In the second quarter, the key index measuring confidence among large manufacturers came in at five from one reported in the previous quarter, the BOJ said, as companies were more upbeat despite global risks.
The index for large non-manufacturers, including the service sector, meanwhile, increased to 23 from 20 in the previous survey, the BOJ said.
However, the index for companies in all sectors, including small and medium-sized firms, came in at negative one during the reporting period, as many companies still held pessimistic views.
The indexes reflect the percentage of companies reporting favorable business conditions minus the percentage of those reporting unfavorable conditions.
The BOJ's Tankan survey is regarded as a leading indicator of Japan's economic health and serves as a guide for the central bank regarding the direction of its future monetary policy.
The BOJ surveyed 9,147 companies nationwide between May 29 and June 30. ■
