Japan – Reuters Tankan 3rd consecutive month of large manufacturer sentiment improving | Forexlive

Reuters tankan results for June 2023. Reuters polled 493 large companies, of which 232
responded.

• big manufacturers’ sentiment index +8 (vs +6 in May), up 3 months in a row and the second in a row in positive territory
  • index is expected to rise to +13 in September
• service-sector index +24 in June (vs +25 in May), at 24 its near its year high
  • index is expected to drop two points to +22
    in September

The persistently stronger services results, helped along by the Covid-exit bounce, is supporting the view
that strong domestic demand may offset an export slowdown.

—

Data showing improvement to the Japanese economy will be welcomed by authorities. And improvement does add to the prospect of Bank of Japan policy change. The big biut to that is the Bank has said, over and over again, that it wants sustained and stable inflation at target and is currently not seeing that or expecting it. Indeed, the Bank forecasts CPI to fall from around October.

—

The next Bank of Japan tankan quarterly survey is due on July 3.

—

The Reuters Tankan is a quarterly survey conducted by Reuters news agency in collaboration with the International University of Japan.

• is similar to the Tankan survey conducted by the Bank of Japan, which is a quarterly survey of business sentiment among Japanese companies
• the Reuters Tankan has a wider coverage of industries and is not limited to large corporations
• survey is based on interviews with executives of about 500 Japanese companies, covering a range of industries and size
• questions asked in the survey cover various aspects of the economy such as sales, profits, capital expenditure, hiring plans, and inflation expectations