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Big Japanese manufacturers' mood reaches 11-year maximum
For the three months to December Japanese business confidence improved, hitting an 11-year maximum, as a major bank poll disclosed. It’s an evident sign that the Japanese economy is gaining momentum from firm exports as well as booming corporate revenues.
However, big manufacturers as well as non-manufacturers actually expect business conditions to worsen for the next three months, emphasizing their reluctance to embrace the improved operating environment via hikes in investment and wages.
Making cash-rich businesses spend more on wages turned to be a priority for the premier Shinzo Abe's vigorous efforts to tame the deflation, which has plagued Japan for almost two decades.
As part of that initiative, on Thursday Abe's ruling coalition passed a plan to slash the corporate tax rate. The measure will apply only for businesses, which increase spending. The given move is expected to improve business sentiment in the nearer months.
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