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

Pessimism persists at big Japanese manufacturers amid global slowdown

Published Mar 22, 2023 07:06PM ET Updated Mar 22, 2023 07:12PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
3/3 © Reuters. FILE PHOTO: Employees of Sanko Manufacturing Co. are seen at the assembly line of the company's ventilators at a factory in Saitama, north of Tokyo, Japan May 8, 2020. REUTERS/Issei Kato 2/3

By Tetsushi Kajimoto

TOKYO (Reuters) - Big Japanese manufacturers remained pessimistic about business conditions for a third straight month in March, the closely watched Reuters Tankan survey showed, reflecting worry about slowing global growth that could hurt the country's export engine.

Service-sector firms' mood rebounded in a sign of domestic demand-driven recovery, in which the prospects of higher wages among big firms at the spring labour talks may encourage households to spend their way out of the COVID-induced doldrums.

The mixed results underscored the fragility of the world's No.3 economy as exports slow and private consumption, that accounts for more than half the economy, lacks momentum.

The Reuters Tankan, designed to closely track the Bank of Japan's key quarterly tankan survey, suggested the central bank's survey due next April 3 will likely show deterioration in business confidence at big manufacturers.

Problems at some western banks added to risks to external demand that already faces the impact of global tightening and a slowdown in China, Japan's biggest trading partner, while a weak yen boosts import costs of commodity-driven inflation.

"Price hikes caused by the war in Ukraine and U.S.-China trade frictions have made our clients cautious about capital expenditure," a manager of a machinery maker wrote in the survey.

The sentiment index for big manufacturers stood at minus 3, slightly up from minus 5 seen in the previous month, according to the survey conducted March 8-17. Materials industries such as steel and textiles as well as electrical machinery firms were among the hardest hit.

Compared with three months ago, the manufacturers' index was down 11 points, suggesting worsening of sentiment in the BOJ tankan's headline big manufacturers index.

The Reuters Tankan index is expected to rebound to plus 10 over the next three months.

The large service-sector firms' index rebounded to plus 21 in March from plus 17 seen in the previous month. The index is expected to fall to plus 16 in June.

The Reuters Tankan, which closely tracks the central bank's quarterly tankan survey, canvassed 493 large companies with a capital base of 1 billion yen employing 100 or more people.

The Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A negative figure means pessimists outnumber optimists.

Pessimism persists at big Japanese manufacturers amid global slowdown

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