Japan November Reuters Tankan survey -9 vs -5 prior

Soft manufacturing survey data

Reuters tankan
  • Prior was -5
  • Weakest since March 2013
  • Non-manufacturing index +12 vs +25 prior
  • Non-manufacturing index hits lowest since Oct 2016
  • 3 month future forecast shows manufacturers index at -3 and non-manufacturers at +10
The typhoon at the start of the month along with the consumption tax hike hammered this survey, particularly on the non-manufacturing side.
Digging into the numbers the retail index fell to -15 from +30 in a troubling drop.
The BOJ has argued that solid domestic demand would offset external weakness but that’s not the way it appears to unfolding.
Pressure is growing for fresh government and/or central bank stimulus.