Reuters Tankan is a monthly report whereas the Bank of Japan Tankan is quarterly (more on these two surveys below).
Respondents citing worries over China and … wait for it … high inflation.
November manufacturing index +5
- prior +7 in October
Non-manufacturing +19 in November, easing for the 5th consecutive month
Outlooks:
- Manufacturing index seen at +6 in February
- non-manufacturing seen at +25
More:
- “Japanese automakers’ slump in the Chinese market is a
concern for the auto
parts business and environment-related
products remained
lacklustre due to China’s sluggish market” - “Although
there is demand, material prices are gradually
rising, putting
pressure on profit” - some respondents
mentioned clients delaying investment
decisions before the
outcome of the U.S. presidential election - extreme weather hurting service-sector confidence. One bright
spot supporting
sentiment was inbound tourism.
***
Reuters Tankan is a monthly survey that seeks to track the Bank of Japan’s tankan quarterly survey
- respondents spoke on the condition of anonymity
- Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A positive reading means optimists outnumber pessimists.