Japan's business sentiment improved in the third quarter, a central bank survey showed, suggesting conditions for a durable economic revival are falling into place even as a global slowdown keeps policymakers cautious about the outlook.
Big nonmanufacturers' mood brightened to levels unseen since 1991, when Japan was experiencing an asset-inflation bubble, a sign retailers were benefiting from a rebound in consumption after the dismantling of pandemic curbs.
Companies also retained their robust spending plans and faced a tight labor market, the survey showed, suggesting that conditions for the Bank of Japan to phase out its massive stimulus could fall into place.