The Bank of Japans December Tankan has shown that big manufacturers index falls for the fourth straight quarter. Japan Tankan Large Manufacturing Index (Q4): 0 (est 4, prev 5).
Key notes
- Big non-manufacturers index falls for second straight quarter.
- Big manufacturers index falls to lowest level since march 2013.
- Many big manufacturers’ cited negative impact from US-Chinia trade tension, overseas slowdown, sales tax hike.
- Big non-manufacturers index matches level hit in march 2017.
- Some boJ manufacturers said businesses were affected by peak-out in Olympics-related demand.
- Some big retailers cited negative impact from sales tax hike, typhoons.
- Big automakers’ sentiment index turns negative for 1st time since June 2016.
The Tankan large Manufacturing Outlook released by the Bank of Japan shows forecasts of the growth in the Manufacturing sector for the next quarter. It is considered as an indicator of future business expectations. A high reading is seen as positive (or bullish) for the JPY, while a low reading is seen as negative (or bearish)
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