Japan's small business confidence points to sluggish activity

Despite a rebound in May, Japan's small business confidence still suggests that the economic recovery lacks vigour. 

"The headline index of business conditions in today's Shoko Chukin survey rebounded from 47.4 in April to 48.1 in May, broadly in line with the Bloomberg median forecast. On past form, the index points to stagnant industrial activity. Respondents are forecasting another rise in business conditions to 49.3 in June, but companies usually expect circumstances to improve in the future, so we wouldn't read too much into this", says Capital Economics.