Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Japan's factory mood hits 3-1/2-year high - Reuters Tankan

Published Aug 18, 2021 07:43PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Women assemble an Aquos television at Sharp Corp's Tochigi plant in Yaita, north of Tokyo, November 19, 2015. REUTERS/Reiji Murai/Files

By Daniel Leussink

TOKYO (Reuters) - Confidence among Japanese manufacturers hit a more than three-and-half-year high in August and service-sector sentiment turned positive, the Reuters Tankan poll showed, suggesting the economy was shaking off the drag from the COVID-19 slump.

The monthly poll, which tracks the Bank of Japan's (BOJ) closely watched tankan quarterly survey, found that manufacturers' mood would slip a little while staying buoyant in three months and service-sector sentiment would recover further.

The poll follows a gross domestic product report this week that showed the world's third-largest economy grew an annualised 1.3% in April-June, thanks to brisk exports and stronger-than-expected consumption.

In the Reuters poll of 503 big and medium-sized companies, in which 252 firms responded on condition of anonymity, managers expressed optimism over a demand recovery to pre-coronavirus levels, due to strong overseas orders for products such as high-tech goods.

"The semiconductor market is booming and demand for related materials is strong," a manager at a ceramics maker wrote in the poll, adding its industrial products and car parts businesses were benefiting from it.

The Reuters Tankan sentiment index for manufacturers rose to 33 from 25 in July, its highest since January 2018, the poll conducted Aug. 4-16 showed. The service index rose to 5 from minus 3 the previous month, its highest since February last year.

Some managers, however, worried about uncertainty from the virus and the impact of rising raw material costs and a prolonged state of emergency in parts of Japan that now covers nearly 60% of the population.

"Raw material prices are rising worldwide and there is uncertainty over the outlook," a manager at a chemical maker wrote in the survey.

The Reuters Tankan poll showed manufacturers' business confidence was seen falling to 31 in November, while that of service-sector firms was expected to rise to 13.

"Conditions aren't bad considering the coronavirus, but they aren't at a level that should have been expected either," a manager at a food maker said.

The BOJ's own "tankan" business survey released in July showed business confidence improved to a two-and-half-year high, while service-sector sentiment turned positive for the first time in five quarters.

The Reuters Tankan index readings are calculated by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists.

Japan's factory mood hits 3-1/2-year high - Reuters Tankan
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email