The current business diffusion index for large non-manufacturers, the DI improved to +19 in Q1 2015 (consensus was +17) from a revised +17 in Q4 2014 (Note that there was a regular revision of the Tankan sample enterprises, and therefore, the previous Tankan results were also revised accordingly.). Further yen depreciation is putting downward pressure on the business conditions of non manufacturers due to the increase in import prices. The DI outlook for large non-manufacturers (for Q2 2015) is not so strong (+17), after a revised +16 as of Q1 , the spring wage negotiations (so-called Shunto) confirmed that wages are increasing. “we expect that a rally in asset prices such as in equities and real estate will lead to an improvement in consumption. Thus, we expect an improvement in this DI in Q2” Said Societe Generale in a report on Thursday
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