The BoJ Tankan released today shows the benchmark business conditions DI for large enterprises at 17% for manufacturers (est. 19%, last 16%) and 24% for non-manufacturers (est. 24%, last 20%). Although economic conditions continue to improve, this steady numbers partly reflect growth in domestic demand ahead of the consumption tax rate hike (5% to 8 % from today). As a result, the respective three-month forecast DIs of 8% and 13% factor in an economic pullback after the tax hike.
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