The Reuters Tankan monthly poll is intended to track the quarterly Bank of Japan Tankan survey. the data was out yesterday and I neglected to publish this post. My bad. Here it is now.
Key indications:
- the September Manufacturing index dropped to +10 from +13 in August (August was a 7 month high)
- the non-manufacturing index plunged to +10 (a five month low) from +19
- the manufacturing index is seen at +10 in December, non-manufacturing seen at +14
From the Reuters report on the survey results:
unyielding cost pressures hit the corporate sector, wholesale inflation has hovered at a near double-digit pace, squeezing profit margins for companies facing inflation-wary clientele and consumers
The yen's recent plunge to a 24-year low has amplified the pain of higher import costs for domestic businesses, although the weaker unit benefits some exporters
"Uncertainties stemming from the situation in Russia and Ukraine, along with rising raw material prices, have made our clients cautious about their capital expenditure plans," said a machinery maker manager.
the sub-index of Japan's staple automobile industry improved to the highest since March
"Demand is recovering since Japan, following Europe and North America, shifted its COVID handling policy to one without curbs,"
"worrisome factors such as China's urban lockdowns and risks of power crunch are lingering."
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The BOJ is set to release its next quarterly Tankan survey results on October 3.
