Bank of Japan Q4 Tankan large manufacturers +12 vs +11 expected

Author: Adam Button | Category: News

Highlights of the fourth quarter Japanese Tankan:

  • Prior large manufacturing index was +12
  • Large manufacturing outlook +7 vs +11 exp
  • Prior large manufacturing outook +10
  • Large non-manufacturing index +25 vs +23 exp
  • Prior large non-manufacturing index was +25
  • Large manufacturing outlook +18 vs +22 exp (prior +19)
  • Employment -19 vs -16 prior

The current reading were both better than expected but the outlooks were significant disappointments. The small manufacturer outlook also fell to -4 from -2 in a surprise signal about widespread pessimism from businesses.

There is more good news in capex despite the sour mood. Large manufacturers expect to increase capex 15.5% compared to 10.9% y/y in September. Large non-manufacturers expect to boost expect to boost spending 8.5%.

    On prices, there is no good news for inflation.

    On net, I'd expect this makes it slightly more likely we get BOJ easing in Q1 2016.

    By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose