Reuters Tankan:
- Japan manufacturers index +20 in August vs +19 in July, up for first time in four months
- Non-manufacturers index +19 in August vs +23 in July, down for two straight months
- Japan manufacturers November index seen at +17, non-manufacturers +24
From the Reuters report accompanying the data (Reuters Tankan poll of 400 big firms taken August 4-18, of which 281 replied):
- manufacturers – first improvement since April
- But the service sector’s mood soured for the second straight month
- Service-sector mood is seen rebounding over the coming three months
- Manufacturers’ sentiment is expected to slide, possibly reflecting weakness in external demand and factory output
- The monthly poll is strongly correlated with the Bank of Japan’s tankan survey. Weak readings in the quarterly tankan due next on Oct. 1 and other indicators could keep the pressure on central bank to act to sustain growth
- “Recovery in demand is being delayed as China and other emerging markets lack momentum despite steadiness in the U.S. economy as seen by recent indicators,” a producer of nonferrous metals said in the Reuters poll.
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What is the Reuters Tankan? … From this marvellous resource:
- There is a Bank of Japan Tankan Survey and a Reuters Tankan Survey. Both are surveys of manufacturing and service companies designed to assess business conditions in Japan. The BOJ Tankan is conducted quarterly, the Reuters Tankan is monthly
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ADDED – The article is available on the web now: Japan manufacturers’ mood up, outlook dims – Reuters Tankan
