Not a good set of results:
- Big manufacturers Sept sentiment falls sharply to 4 from August’s 12
- Service sector mood slumps the most since 2020, to 23 from 32 in August
- Both sectors see subdued outlook
- December Manufacturing index seen at +4
- non-manufacturing seen at 21
Reuters summary:
In written comments, many Japanese firms complained about
elevated input costs of raw materials as well as weak demand at
home and abroad.
- The Ukraine war and heightened Sino-U.S.
tensions were also seen as headwinds. - “Our business conditions are not so good due to uncertainty
surrounding the global economy such as geopolitical risks
stemming from a prolonged war in Ukraine and rising tension
between U.S.-China frictions,” a machinery maker manager wrote
in the survey. - “Overseas markets, particularly in China, are slumping and
domestic demand is also languishing,” a chemicals maker manger
wrote on condition of anonymity.
—
The Reuters Tankan is a monthly survey conducted by Reuters news agency in collaboration with the International University of Japan.
- is similar to the Tankan survey conducted by the Bank of Japan, which is a quarterly survey of business sentiment among Japanese companies
- the Reuters Tankan has a wider coverage of industries and is not limited to large corporations
- survey is based on interviews with executives of about 500 Japanese companies, covering a range of industries and size
- questions asked in the survey cover various aspects of the economy such as sales, profits, capital expenditure, hiring plans, and inflation expectations
This article was written by Eamonn Sheridan at www.forexlive.com. Source