Capital spending is strong and will continue to be a key driver of growth. Japan's economy has clearly emerged from last year's lull and will enjoy steady growth supported by domestic demand.

It wasn't as good as expected but it doesn't change the outlook for the economy. The impression is that the recovery is spreading to smaller companies.

The survey shows corporate earnings are very healthy.

It's going just as everyone has been expecting. We'll probably see the year-on-year (CPI) increase jump to 0.3 or 0.4 percent next month as the effect of one-off factors last year fades, giving the BOJ more confidence about a policy change.

It's mainly a backlash from the powerful momentum of the last half-year.

Strong corporate earnings are fuelling capital spending and spilling over to the household sector, supporting consumption.