Breaking News
Investing Pro 0
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started

Japan's factory mood improves further in March: Reuters Tankan

Published Mar 16, 2021 07:14PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: An employee wearing a protective face mask and face guard works on the automobile assembly line at the factory of Mitsubishi Fuso Truck and Bus Corp in Kawasaki

By Daniel Leussink

TOKYO (Reuters) - Confidence at Japanese manufacturers strengthened in March, the Reuters Tankan poll showed, as firms grew more upbeat about a gradual economic recovery though worries about the immediate impact of the coronavirus remained.

The monthly poll indicated that the Bank of Japan's (BOJ) tankan quarterly survey due April 1 will show an improvement in business sentiment among manufacturers, while that of non-manufacturers remains depressed.

It comes as investors are closely eyeing the outcome of a BOJ policy review on Friday in which it may phase out a numerical target for its asset buying, a move which would mark a turning point for Governor Haruhiko Kuroda's massive stimulus programme.

The Reuters Tankan showed the sentiment index for manufacturers improved to 6 from 3 in the previous month, led by chemicals and oil refinery/ceramics. Some 235 out of 482 large- and mid-sized non-financial firms surveyed between March 3 and March 12 responded, all on condition of anonymity.

Emergency measures rolled out in Japan to halt the country's third, and most lethal, wave of the virus has curbed consumer spending and hit the services sector particularly hard.

"Almost all accommodation and banquet reservations were cancelled due to the impact of the third wave (of the virus), bringing conditions for us back to a critical state," a manager at a services sector firm wrote in the survey.

The non-manufacturers' index edged up to minus 5 from minus 7 in the previous month but remained in negative territory. It was seen rising to 5 in June, turning positive, the poll showed.

The world's third-largest economy expanded at a slower-than-initially-reported pace in the fourth quarter of last year, the government said last week, with the virus crisis causing firms to scale down their capital spending.

Respondents said economic conditions were improving, in part due to solid Chinese demand.

The sentiment index for manufacturers was expected to rise further to 15 in June, according to the poll.

But some noted the rebound was centred on specific areas of the economy, such as semiconductors and electrical device-making.

"The momentum has slowed slightly except in semiconductors even as the recovery trend continues," a manager at a rubber producer reported in the survey.

Another manager, at a transport equipment maker, wrote: "Transportation costs have soared because of a container shortage, and it has become difficult to secure ships, even though customer orders have recovered."

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

Japan's factory mood improves further in March: 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 profile, will be public on 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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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?
Replace the attached chart with a new chart ?
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'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
Sign up with Email