Big manufacturers39; sentiment 14 vs forecast 12
Nonmanufacturers39; index 33 vs forecast 32
Big firms expect to increase capex by 11.3 in FY 2024
Data to be scrutinised at BOJ39;s Dec 1819 policy meeting

TOKYO, Dec 13 Reuters Japanese big manufacturers39; sentiment improved slightly in the three months to December, a quarterly survey showed on Friday, boding well for the central bank39;s plans to gradually raise interest rates from nearzero levels.

Nonmanufacturers also remained upbeat on business conditions, though concerns over rising raw material and labour costs weighed on retailers39; morale, the survey showed.

The data released ahead of the Bank of Japan39;s twoday policy meeting next week highlights how an intensifying labour shortage is becoming a headache for companies and a potential constraint to economic growth.

Companies expect business conditions to worsen over the next three months, the BOJ39;s tankan survey showed, as soft global demand and threats of higher tariffs from U.S. presidentelect Donald Trump cloud the outlook.

The headline index measuring big manufacturers39; business confidence stood at 14 in December, up from 13 three months ago and marking the highest reading since March 2022, the survey showed. It compared with a median market forecast for 12.

The improvement was due largely to a rebound in auto production and robust demand for equipment as companies ramp up capital expenditure, a BOJ official told a briefing.

Companies seem to…