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
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