According to the Tankan survey released on October 1, corporate sentiment is generally improving, as is shown by the fact that the judgment of business conditions by large manufacturers has turned to "favorable" for the first time since December 2000. This result is more or less in line with the assessment of Japan's economy that I have just described.
It should be noted that there still remain persistent structural adjustment pressures stemming from excess debt and labor. Therefore, the extent and strength of the likely recovery permeating through the economy are uncertain, and must continue to be monitored carefully.