Big manufacturers39; sentiment index 12 vs f39;cast 10
Nonmanufacturers39; index 30 vs f39;cast 27
Big firms see capex increase of 13.5 this fiscal year
Corporate inflation expectations stay above 2 tankan

TOKYO, Dec 13 Reuters Business confidence at big Japanese manufacturers hit a near twoyear high in the three months to December, a closely watched central bank survey showed, suggesting the economic conditions needed to unwind massive stimulus were falling into place.

Big nonmanufacturers39; sentiment also improved to levels not seen since 1991, the quarterly tankan survey showed on Wednesday, dispelling analysts39; concerns that weak consumption could weigh on the fragile economic recovery.

The Tankan presents a strong case for the Bank of Japan to withdraw ultraloose monetary policy, said Marcel Thieliant, head of AsiaPacific at Capital Economics, pointing to signs of tightening labour market conditions.

The headline index for big manufacturers39; mood rose to 12 from 9 three months ago, the tankan showed, improving for the third straight quarter. It slightly exceeded a median market forecast for 10 and was the highest level since March 2022.

Automakers39; mood improved sharply in a sign manufacturers were benefiting from the boost to profits from a weak yen and easing supply constraints.

Big nonmanufacturers39; sentiment index rose to 30 from 27, improving for the seventh straight quarter and hitting the highest level since November 1991, the survey…