Japan has received good news. There are now more optimists among Japanese manufacturers for the first time since 2008. Japan has the world’s second largest economy, and things are starting to look up as the country has struggled in past years to overcome its financial slump. One of Japan’s key banks released a report which showed that business manufacturers are improving for the fifth straight quarter, as exports such as gadgets, cars, and other goods are on the rise. The number of businesses reporting that conditions are good is higher than those reporting unfavorable situations, allowing Japan to look forward to future growth.
Large companies in Japan are the first to feel the economy change. Companies such as Toshiba and Honda have both projected increased capital spending plans for the year. Both small and medium sized businesses also look forward to benefiting from export growth, but they also fear being overlooked because of problems concerning bank lending and lack of liquidity. Also smaller companies have to keep up with larger companies that have more exports and a high confidence for growth.
Although there are still apprehensions among manufacturers and government officials, there are sure to be positive results from exports and increased business in Japan. The Bank of Japan’s governor, Masaaki Shirakawa, has pointed to other countries, especially emerging economies, for Japan’s financial improvements. With the start of these developments Japan should still be cautious, but confidence among the business sector should lead to overall improvement for the country.