Corporate sentiment deteriorated for the third consecutive quarter in Tankan survey
According to the Tankan,
a survey of corporate sentiment released by the Bank of Japan on October 1, the
large-scale manufacturing industry index(DI) decreased by two points from the
previous survey in June to plus 5 points.
The index has deteriorated for the third consecutive quarter to the lowest since June 2013.
The effects of the US-China trade friction and the slowdown of overseas economies are said to have affected the result.
However, some have argued that this result was better than the economists' expectations.
For example, by industry, sentiment of electrical machinery has improved to plus 5 points from plus 2 points of the previous survey.
Despite the concerns that IT demand remains stagnant, recent inquiries for the related goods and products are said to be increasing.
The adjustment of inventory of IT-related goods such as electronic parts and semiconductors is progressing and business sentiment may be bottoming out.
On the other hand, non-manufacturing sector which has been relatively well so far started to be affected by the drop in special demand during long consecutive holidays in May and the decrease of tourists from South Korea etc.
It is also concerned that the consumption tax raised from 8% to 10% in October has negative impact on the economy and future economic outlook will continues to be muddy.
Economists consider October Tankan survey shows slowing international economy starts affecting domestic demands and future situation can not be so optimistic.
The index has deteriorated for the third consecutive quarter to the lowest since June 2013.
The effects of the US-China trade friction and the slowdown of overseas economies are said to have affected the result.
However, some have argued that this result was better than the economists' expectations.
For example, by industry, sentiment of electrical machinery has improved to plus 5 points from plus 2 points of the previous survey.
Despite the concerns that IT demand remains stagnant, recent inquiries for the related goods and products are said to be increasing.
The adjustment of inventory of IT-related goods such as electronic parts and semiconductors is progressing and business sentiment may be bottoming out.
On the other hand, non-manufacturing sector which has been relatively well so far started to be affected by the drop in special demand during long consecutive holidays in May and the decrease of tourists from South Korea etc.
It is also concerned that the consumption tax raised from 8% to 10% in October has negative impact on the economy and future economic outlook will continues to be muddy.
Economists consider October Tankan survey shows slowing international economy starts affecting domestic demands and future situation can not be so optimistic.
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