The Bank of Japan said Thursday that the closely watched "tankan" business sentiment survey rose 15 points to minus 33 for big manufacturers last quarter, showing confidence is up amid signs of an economic recovery.

Confidence at nonmanufacturers improved as well, climbing 5 points in the three months through September to minus 24, the central bank said.

The results, marking the first time the tankan has logged two consecutive quarters of improvement in nearly three years, are expected to fuel optimism about the future of the economy, which is mired in its worst recession since World War II.