The monthly Reuters Tankan survey, a guide to the Bank of Japan's quarterly tankan survey:
- August manufacturers sentiment +10, July was +11
- May non-manufacturers sentiment +24 vs +26 in July
- November manufacturers index seen at +5, non-manufacturers at +26
Japanese manufacturers' confidence slightly dipped in August. Its expected to dip further in the months ahead. This sentiment downturn is largely attributed to sluggish demand from China, particularly impacting the auto, chemicals, steel, and electronics sectors.
Service sector sentiment also softened, although non-manufacturers remain optimistic about a rebound by November.
The survey comes after the Bank of Japan's recent interest rate hike and plans to curb bond buying, that helped fuel volatility in Japanese markets. Overall, the survey highlights growing concerns among Japanese businesses about the economic outlook, driven by external pressures and uncertain market conditions.
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Reuters Tankan is a monthly survey that seeks to track the Bank of Japan's tankan quarterly survey
- respondents spoke on the condition of anonymity
- Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A positive reading means optimists outnumber pessimists.
