Reuters Tankan: Confidence at Japanese manufacturers inched up in August via ForexLive

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Reuters Tankan:

  • Japan manufacturers index +20 in August vs +19 in July, up for first time in four months
  • Non-manufacturers index +19 in August vs +23 in July, down for two straight months
  • Japan manufacturers November index seen at +17, non-manufacturers +24

From the Reuters report accompanying the data (Reuters Tankan poll of 400 big firms taken August 4-18, of which 281 replied):

  • manufacturers – first improvement since April
  • But the service sector's mood soured for the second straight month
  • Service-sector mood is seen rebounding over the coming three months
  • Manufacturers' sentiment is expected to slide, possibly reflecting weakness in external demand and factory output
  • The monthly poll is strongly correlated with the Bank of Japan's tankan survey. Weak readings in the quarterly tankan due next on Oct. 1 and other indicators could keep the pressure on central bank to act to sustain growth
  • “Recovery in demand is being delayed as China and other emerging markets lack momentum despite steadiness in the U.S. economy as seen by recent indicators,” a producer of nonferrous metals said in the Reuters poll.

What is the Reuters Tankan? … From this marvellous resource:

  • There is a Bank of Japan Tankan Survey and a Reuters Tankan Survey. Both are surveys of manufacturing and service companies designed to assess business conditions in Japan. The BOJ Tankan is conducted quarterly, the Reuters Tankan is monthly

posted via ForexLive

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