Big manufacturers index 6 in May, first positive figure in 2023
Servicesector mood at 5month high, outlook hardly unchanged
Manufacturers39; sentiment seen up ahead despite uncertainty
Reuters Tankan closely correlates with BOJ tankan

TOKYO, May 24 Reuters Business sentiment at big Japanese manufacturers turned positive for the first time this year and servicesector morale hit a fivemonth high, the Reuters Tankan poll showed, as the economy continued to improve from a COVIDled recession.

Wednesday39;s monthly poll, which tracks the Bank of Japan39;s closely watched quarterly tankan survey, found that manufacturers are also upbeat about the coming three months, while servicesector morale was seen down a tad.

The solid reading may further fuel speculation that the BOJ will embark on normalising its easing policy sooner rather than later. However, governor Kazuo Ueda has repeatedly said that inflation, supported by wage hikes, needs to track at a sustainable rate of 2 before the bank could consider any exit.

Given Governor Ueda39;s cautious stance on global economy, it still takes time for the BOJ to embark on normalising monetary policy, said Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities.

Big manufacturers39; sentiment rose on improvements in the auto industry and it39;s likely to stay in positive territory, although the pace of recovery will be moderate.

The sentiment index for big manufacturers reached 6, up from April, the survey of 493…