Reuters Tankan shows Japan manufacturers index -4 in August vs +3 in Jul.y
- lowest reading since April 2013
- and this is the first negative reading for the index in over 6 years
Non-manufacturers index +13 in August vs +25 in July
Manufacturers November index seen at +3, non-manufacturers seen unchanged
Commentary via Reuters …nails it:
- Concerns about weakening global demand intensified
- growing risk of a U.S. recession
- Germany’s economy in contraction
- China’s economy was worsening
- further soured the outlook for export-reliant economies such as Japan’s
More:
- “The U.S.-China trade war, Japan’s export curbs to South Korea and the recent yen rises have formed a bottleneck for sales”
- “The selling price remains in a downtrend due to expansion of e-commerce markets, while a scheduled sales tax hike keep shoppers on guard against price increases”
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The Reuters monthly poll, tracks the Bank of Japan’s (BOJ) tankan quarterly survey
- conducted July 31-Aug 14
- total of 258 firms responded
