KANSAI Close-up

Business confidence stays above national average

Business confidence in six prefectures in the Kansai region (Osaka, Kyoto, Hyogo, Nara, Shiga and Wakayama) stayed above the nation's average in Dec. for the 11th consecutive quarter, according to a quarterly 'tankan'report by BOJ.
The diffusion index (DI), the ratio of companies viewing business activity as positive to those in the negative, was 10 for all industries. It marked an increase of 2 points from Sept. and surpassed the national average of 8.
The report said the DI in the manufacturing sector was up 2 points to 17 from the previous survey. The index for the chemical industry increased by 6 points, steel by 11 points, metal products by 16 points and precision machinery by 2 points. Large manufacturers were buoyant, registering 27. The index for nonmanufacturers advanced 2 points to 3 and topped the national average of 2.
Capital spending plans for the second half of fiscal 2006 continued to be brisk, registering an increase of 12.7% for all industries and beating 10.4% on the national average.

For inquiries, please contact Osaka Branch of Bank of Japan (Tel: 06-6202-1111)URL:http://www3.boj.or.jp/osaka