The Reuters monthly poll, which tracks the Bank of Japan’s (BOJ) closely watched Tankan quarterly survey, found that the confidence among Japanese manufacturers improved in October, although is expected to remain flat over the coming three months.
The survey also revealed that the non-manufacturers confidence dipped to its lowest in nearly two years as recent natural disasters hit consumers and some firms hard.
Key Findings:
“The sentiment index for manufacturers stood at 28, up two points from the previous month, led by metal products/machinery and textiles/paper, according to the survey taken Sept 27 to Oct 10. The index was seen to stay flat in January.
In the poll of 282 large- and mid-sized firms, in which 252 firms responded on condition of anonymity, managers complained about global trade tensions, rising raw materials prices and difficulty of passing on costs due to weak private consumption.
The non-manufacturers’ index tumbled to 24 in October from 33 in the previous month, dragged down by the transport/utility and retail/wholesale sectors. The index was expected to bounce to 29 in January.”
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