Tankan survey shows slowing economy and soggy demand in the near future

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On December 13, the Bank of Japan released Tankan report, a short-term economic observation survey of corporate sentiment. 

 In this survey, the index showing economic sentiment of large manufacturing companies fell to 0, 5 points lower than the previous survey, the fourth consecutive deterioration. It was the lowest for 6 years and 9 months since March 2013. 
Tankan survey shows slowing economy and soggy demand in the near future

 As this survey was the first after the consumption tax was hiked, the index of large non-manufacturing companies including retail also deteriorated. The index downed by 1 point to 20 for the second consecutive decline. 

 In the retail industry, sales have declined due to fading last-minute demand after the consumption tax hike and the severe damage brought by Typhoon No.19 in Kanto region, Tohoku region and others. 
Production in the automobile industry also declined. 

 As for the economy three months ahead, the index of large manufacturing companies is expected to be flat and that of the non-manufacturing companies is expected to deteriorate. 

 The US - China trade friction and the effect by the consumption tax hike on consumer’s sentiment will continue to be the focal point attracting attention from those whom are afraid of looming difficult time to come.

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