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