2016.10.0301:36:00UTC+00Japan Big Manufacturers' Sentiment Remains Unchanged

Japanese big manufacturers' confidence held steady in September, a closely watched quarterly survey from the Bank of Japan showed Monday.

The Tankan index for large manufacturers' sentiment came in at 6 in the third quarter, the same score as seen in the second quarter. This was the weakest level in more than three years. The score was expected to rise to +7.

The sentiment index is forecast to remain at 6 in the fourth quarter. A reading above zero indicates optimists outnumber pessimists.

At the same time, the large non-manufacturers' confidence index slid to 18 in September from 19 in June. The expected score was 18. The reading was forecast to drop to 16 in December.

The survey underlines that the BoJ has more work to do to reach its 2 percent inflation target, Marcel Thieliant at Capital Economics, said.

The economist said the renewed fall in non-manufacturing sentiment suggested that circumstances at home are worsening.

Big enterprises plan to raise their capital expenditure in the current fiscal year by 6.3 percent. In June, companies had projected 6.2 percent increase.

The survey was carried out between August 29 and September 30.

According to large manufacturers, the yen will trade at an average 107.92 against the U.S. dollar in the FY 2016 compared to 111.41 estimated in June survey.