TOKYO, July 2 | Sun Jul 1, 2012 7:57pm EDT
TOKYO, July 2 (Reuters) - Big Japanese manufacturers' sentiment improved in the second quarter from the previous quarter, a closely watched Bank of Japan survey showed, helped by strength in domestic demand as reconstruction from last year's massive earthquake makes headway.
The headline index for big manufacturers' sentiment was minus 1 in June, up from March and higher than the median market forecast for minus 4, the quarterly tankan survey showed on Monday.
Big manufacturers expect conditions to improve over the next three months, with the index for September seen at plus 1, compared with a median forecast of minus 3.
The survey also showed big firms plan to raise their capital spending b y 6.2 percent in the financial year to next March, compared with a median forecast for a 3.5 percent increase.
The sentiment indexes are derived by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A negative reading means pessimists outnumbered optimists.
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