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The latest monthly Reuters poll, which tracks the Bank of Japan’s (BOJ) closely-watched Tankan quarterly survey, found manufacturers’ mood improved in May and is expected to rise further over the coming three months.

Key Findings:                    

“Highlighting uncertainties, nearly two-thirds of companies saw growth remaining flat in the second quarter, nearly two-fifth saw it slowing and just 17 percent saw it accelerating.

In the poll of 477 large- and mid-sized companies, many manufacturers voiced worry about the Sino-U.S. trade war, which has disrupted supply chains and hit Japan’s export-led economy.

Around 230 firms in the poll responded on condition of anonymity.

The sentiment index for manufacturers stood at 12 in May, up four points from the previous month, led by oil refiners, food processing firms, autos and precision machinery, according to the poll conducted May 8-17.

The index is expected to rise further to 15 in August.

The service-sector index grew to 27 in May from 24 in the previous month, led by information/communications, transport/utility and other service firms.

The index is expected to slip to 26 in August.”