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Bank of Japan's Tankan Survey Looks Better
It is predicted that the Bank of Japan's Tankan survey on June 1st will show that important manufacturing companies believe the "worst of the recession" is over.
It is predicted that the Bank of Japan's Tankan survey on June 1st will show that important manufacturing companies believe the "worst of the recession" is over on July 1, 2009. Evidence of the new outlook among large makers of electronics and cars is expected to rise from minus 58 in March to minus 43. Although the minus shows that pessimists outnumber optimists, the decrease in number of pessimists is important, especially in the manufacturing industry. As Jan Lambregts, head of financial markets research at Rabobank International in Hong Kong said, "we're seeing a rebound from rock bottom." A large increase in Chinese demand has helped Japan. Thanks to China's government spending, Japan's "heavy equipment" autos and materials have increased in sales. For instance, in China, Nissan sales rose 37 percent in April 20009, due to a subsidy that cut the consumption tax in half on small cars. In the U.S, Mazda Motor Corporations are also predicted to increase because of the Obama administration's "cash for clunkers" which would give consumers some money for trading in their old vehicles. (As much as $4,500 according to Bloomberg.) In Japan, electronics sales have increased 18 percent in the past month, due to the government's introduction of a program to advocate consumers to purchase eco-friendly products.read source article