Japan manufacturers turn pessimistic for first time since April 2013 - Reuters Tankan Survey

Dhwani Mehta FXStreet

According to the monthly Reuters Tankan survey, the sentiment around the Japanese manufacturers turned bearish for the first time since April 2013 in August amid escalating US-China trade war.

Key Findings:

“The monthly poll, which tracks the Bank of Japan’s (BOJ) closely-watched Tankan quarterly survey, found manufacturers’ mood slid for a third straight month to minus 4 in August from the prior month’s plus 3.

It was the weakest sentiment reading since April 2013, when it was minus 4, dragged down by electric machinery, metals, food processors and transport equipment.

Confidence in the service sector also plunged, to plus 13 from plus 25 in July, due to big drops at wholesalers and retailers.

While the Reuters Tankan’s manufacturers’ sentiment index is seen swinging back to plus 3 over the next three months, the service-sector index is expected to remain unchanged at plus 13 in November.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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