Via Reuters monthly Tankan report. The manufacturing i ndex hits its highest since December 2018.

Manufacturers' sentiment index +21

  • vs April +13

Service sector index +2 in May (first positive reading since the early months of 2020)

  • vs -3 in April

Outlooks ...

  • manufacturers' business confidence was seen unchanged at 21 in August
  • service-sector firms was forecast to rise to 13

Comments via the report:

  • manufacturers benefited from stronger overseas demand, a sign that the export-driven economic recovery remained intact
  • improvement in confidence was somewhat patchy, with firms saying they were feeling the drag from the coronavirus pandemic


The background to this survey is that m uch of Japan, including Tokyo and Osaka, are under a state of emergency until the end of the month (at least).


Reuters monthly Tankan seeks to fill in the gap left by the quarterly BOJ survey of the same name.

  • poll conducted May 6-17
  • survey of 482 large- and mid-sized companies, in which 236 firms responded
  • Reuters Tankan index readings are derived by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A negative reading means pessimists outnumber optimists.