Confidence among Japan’s major manufacturers hit a more than two-year high, but sentiment in the services sector has deteriorated as costs rise due to the weak yen, a central bank survey showed, adding to the mixed economic prospects.
A rare, unscheduled cut to Japan’s historical gross domestic product (GDP) data also showed the economy contracted more than reported in the first quarter, likely forcing the central bank to lower its growth forecast later this month.
According to analysts, the findings will be announced ahead of the Bank of Japan’s (BOJ) next policy meeting on July 30-31. This makes it more difficult to decide how quickly the interest rate should be increased.
