Researchers at private think tanks predict that an upcoming Tankan business sentiment survey is likely to show the first improvement among Japan's major manufacturers in seven quarters.

Twelve private research institutes have issued their forecasts prior to the release of the latest survey next Monday.

All but one are projecting an improvement in business sentiment among the companies.

The median forecast is plus 3, up 2 points from the previous survey in March.

The institutes point to a recovery in auto production amid an easing of shortages of semiconductors and other parts. They also say material cost rises have leveled off, thanks to lower crude-oil prices.

As for the index for large non-manufacturers, all 12 of the think-tanks are projecting an increase. A rise in the number of foreign tourists and a business recovery at hotels and restaurants are major reasons.

The median forecast comes to 22 plus, an improvement of 2 points.

The Bank of Japan's Tankan asks about 10,000 companies about their business conditions every three months.