Japan: Business Sentiment Climbing

July 1st, 2013
in econ_news, syndication

Econintersect:  The Tankan Summary of business sentiment for Japan jumped into breakingnews130pxpositive territory in the June report issued by the Bank of Japan.  The latest reading for manufacturing today (01 June 2013) was +4.  The last previous reading three months ago was -8, which had been the lowest since the start of the recovery from the Greta Financial Crisis.  The positive reading was the first since the third quarter of 2011.  The non-manufacturing sentiment, which has been positive for the past year, moved higher to +12 from +6 after the first quarter.

Follow up:

The most negative sentiment came from businesses relying on dollar based imports (petroleum, coal, etc.).  These businesses have been stgruggling because of the 20% decline of the yen vs. the dollar over the last quarter.

MarketWatch reports that both the Australian dollar and the yen gained slightly against the dollar after the announcement.

The following are two quotes from the Financial Times:

The mood of Japan has “totally changed”, said Ryoichi Nishizawa, 35 year-old chief executive of Neo Career, an employment agency which has seen a sharp pick-up in traffic through its café-style advice centres.
“We see a firm recovery in consumption as the stronger corporate outlook on the economy manifests itself in larger summer bonus payouts”, said Naohiko Baba, chief economist at Goldman Sachs in Tokyo, before the release of Monday’s data.

A quote from the BBC:

"The Tankan confirmed that expectations among big Japanese manufacturers for a weaker yen and a steady economic recovery more than offset recent market turmoil," said Takeshi Minami, chief economist as Norinchukin Research Institute, in Tokyo.

"Industrial output is rising slowly, exports are recovering gradually, public works are expected to come out more strongly and next year's sales tax hike will prompt a last-minute buying rush later this year.

"All of these positive factors, together with the effects of 'Abenomics', are encouraging to Japanese firms."

The following two graphs are from the Tankan Report.

Click on either graph for large image.japan-manufacturing-sentiment-2013-june



Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

 navigate econintersect.com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved