Robert Carnell, chief economist head of research at ING, points out that Japan’s 4Q18 Tankan shows the rate of activity remaining strong, in contrast to the very weak 3Q GDP results, with the index steady at 19.
Key Quotes
“This, in our view, is a better indication of the underlying strength of the Japanese economy than the prior GDP figures.”
“The same message played out in other parts of the survey, where overall index levels remain consistent with ongoing, and in some cases, slightly improved growth from 3Q18. As such, we feel that there is a good chance that the 3QGDP figures, when released next year, will show a strong bounceback from the apparent weakness of the preceding quarter, leaving overall GDP growth only a little shy of 2.0% – a very creditable performance for Japan.”
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