The Bank of Japan (BOJ)’s quarterly survey result for Q2 was released yesterday.
Here’s some overnight press from the US on ‘5 key takeaway’ points:
1. Fall in sentiment is likely temporary
- Looking three months ahead … large manufacturers expect the index to improve … suggesting that companies see a quick rebound
2. Capital spending is on the rise
- The BOJ is counting on capex outlays to offset a fall in consumption following the sales tax rise
3. Labor market is tightening
- Businesses of all sizes are still feeling a labor shortage … it should lead to higher wages, fueling inflationary pressure
4. Firms are more confident about raising prices
5. Overseas demand is improving
More here
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As I said yesterday the Tankan results were a mixed bag, sentiment was a little on the disappointing side but capex plans were a big positive. The yen weakened throughout the session afterwards but it’s a big question if that’s going to be sustained. Sideways to up 9for the yen) I think is likely.
