Reuters Tankan:

  • Japan manufacturers index +9 in January ( was vs +10 in December)
  • Non-manufacturers index +20 in January (+23 in December)
  • Manufacturers April index seen at +13, non-manufacturers unchanged
  • Confidence at Japanese manufacturers slid for a second straight month in January
  • Service companies also lower
  • But … manufacturers’ confidence is seen bouncing over the next three months, service firms flat
  • Citres “sluggish domestic demand”

The Reuters Tankan surveyed 483 big Japanese companies, of which 268 replied, between January 5-15. Some comments from respondents:

  • “Only the U.S. economy is relatively firm while world economy on the whole remains sluggish”
  • “Nonferrous metal prices are in a downtrend due to risk aversion caused by a sharp drop in crude oil prices. A weak yen is supportive, but recovery is slow in the real economy.”
  • Transport equipment makers expressed concerns about weakening car sales at home as well as in Europe, China and Asia
  • Still slack consumer demand after April’s national sales tax hike