Japan manufacturing confidence still below pre-quake levels

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15-09-2011 | 02:02
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Japan manufacturing confidence still below pre-quake levels
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Japan manufacturing confidence still below pre-quake levels

Japanese manufacturing confidence improved for a fifth straight month in September but the pace of recovery slowed to a crawl, a Reuters poll showed, underlining the view that the economy's rapid rebound from the March earthquake may have run its course.    
The monthly poll, closely correlated with the Bank of Japan's key quarterly tankan corporate survey, also showed that non-manufacturers' sentiment fell for the first time in three months, reflecting sluggish domestic demand.    

The poll of 400 big firms, of which 257 responded, cast some doubt on the prospects for a V-shaped recovery in the world's No.3 economy, which is emerging from a recession wrought by the March disaster.    

A stubbornly strong yen and global economic slowdown threaten to derail the export-reliant economy's recovery, while weak domestic demand and a delay in reconstruction spending further cloud the outlook.    

The Reuters Tankan survey for September showed the manufacturing sentiment index, derived by subtracting the percentage of pessimistic responses from optimistic ones, rose just two points from August to plus 8.   

It marked the smallest gain since the index plunged by a record in April after the March disaster, as confidence weakened in sectors including chemicals, steel and exporters of cars and electronics, according to the survey taken from Aug. 26 to Sept. 12.    
The index is seen improving further to plus 13 in December, though still below levels seen just before the magnitude 9.0 earthquake and deadly tsunami devastated the northeast coast and triggered a radiation crisis at the Fukushima Daiichi nuclear plant.  
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