Japanese Tankan

BoJ Tankan - Sept large manufacturers index at plus 24, beats forecast
Business sentiment at Japan's large manufacturers improved for the second straight quarter, with the closely-watched diffusion index for the sector rising to plus 24 in September from plus 21 in June, according to the Bank of Japan's quarterly survey or Tankan. The headline number was above the market consensus forecast of plus 21, with forecasts ranging from plus 18 to plus 22. In the June Tankan survey, large manufacturers had forecast the diffusion index would come in at plus 22 in September. The firms surveyed assume the US dollar will average 111.64 yen in the year to March 2007, compared to the previous forecast of 111.09 in June. The BoJ issued the following results of its business confidence index in the September survey, compared with index levels in the June poll: Large manufacturers - plus 24 vs plus 21 Large non-manufacturers - plus 20 vs plus 20 Mid-sized manufacturers - plus 14 vs plus 13 Mid-sized non-manufacturers - plus 5 vs plus 4 Small-sized manufacturers - plus 6 vs plus 7 Small-sized non-manufacturers - minus 8 vs minus 6 The BoJ also issued the following forecasts for December: Large manufacturers - plus 21 Large non-manufacturers - plus 21 Mid-sized manufacturers - plus 11 Mid-sized non-manufacturers - minus 4 Small-sized manufacturers - plus 7 Small-sized non-manufacturers - minus 9

BoJ Tankan - Japan non-financial firms yr to March 2007 capex seen up 8.3 pct
The combined capital expenditure of all non-financial Japanese firms is expected to rise 8.3 pct in the year to March 2007, according to the Bank of Japan's September Tankan survey, higher than the estimated 6.2 pct increase during the June poll. The BoJ issued the following capital investment plans for the current fiscal year, compared with forecasts given in the June survey: All industries - up 8.3 pct vs up 6.2 pct All manufacturers - up 12.5 pct vs up 11.0 pct All non-manufacturers - up 6.2 pct vs up 3.8 pct Big firms - up 11.5 pct vs up 11.6 Big manufacturers - up 16.9 pct vs up 16.4 pct Big non-manufacturers - up 8.5 pct vs up 8.9 pct Mid-sized firms - up 8.0 pct vs up 3.7 pct Mid-sized manufacturers - up 1.4 pct vs down 1.6 pct Mid-sized non-manufacturers - up 11.0 pct vs up 6.2 pct Small-sized firms - down 3.1 pct vs down 11.0 pct Small manufacturers - up 3.3 pct vs down 1.3 pct Small non-manufacturers - down 5.4 pct vs down 14.6 pct

BoJ Tankan - Large manufacturers Sept procurement price index 45 vs 41 in June
The procurement price index for large manufacturers, which measures the number of firms that see procurement prices rising minus those that expect price declines, deteriorated broadly due to rising prices of crude oil and basic materials, according to the Bank of Japan's latest Tankan survey of business sentiment. The BoJ issued the following breakdown for the procurement price index in the September survey, compared to levels in the June poll: Big manufacturers - plus 45 vs plus 41 Big basic materials producers - plus 60 vs plus 53 Big processors - plus 37 vs plus 33 Big non-manufacturers - plus 21 vs plus 18 Small and mid-sized manufacturers - plus 52 vs plus 47 Small and mid-sized basic materials producers - plus 56 vs plus 52 Small and mid-sized processors - plus 50 vs plus 44 Small and mid-sized non-manufacturers - plus 32 vs plus 27 The BoJ also issued the following forecasts for December: Big manufacturers - plus 34 Big basic materials producers - plus 40 Big processors - plus 30 Big non-manufacturers - plus 21 Small and mid-sized manufacturers - plus 54 Small and mid-sized basic materials producers - plus 56 Small and mid-sized processors - plus 53 Small and mid-sized non-manufacturers - plus 36