Japanese business sentiment dropped (services especially) in September (Reuters Tankan)

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Japanese business sentiment dropped (services especially) in September (Reuters Tankan)

<p>The Reuters Tankan monthly poll is intended to track the quarterly Bank of Japan Tankan survey. the data was out yesterday and I neglected to publish this post. My bad. Here it is now. </p><p>Key indications:</p><ul><li>the September Manufacturing index dropped to +10 from +13 in August (August was a 7 month high)</li><li>the non-manufacturing index plunged to +10 (a five month low) from +19</li><li>the manufacturing index is seen at +10 in December, non-manufacturing seen at +14</li></ul><p>From the Reuters report on the survey results:</p><p>unyielding cost pressures hit the corporate sector, wholesale inflation has hovered at a near double-digit pace, squeezing profit margins for companies facing inflation-wary clientele and consumers</p><p>The yen's recent plunge to a 24-year low has amplified the pain of higher import costs for domestic businesses, although the weaker unit benefits some exporters</p><p>"Uncertainties stemming from the situation in  and e, along with rising raw material prices, have made our clients cautious about their capital expenditure plans," said a machinery maker manager. </p><p>the sub-index of Japan's staple automobile industry improved to the highest since March</p><p>"Demand is recovering since Japan, following Europe and North America, shifted its COVID handling policy to one without curbs," </p><p>"worrisome factors such as China's urban lockdowns and risks of power crunch are lingering." </p><p>---</p><p>The BOJ is set to release its next quarterly Tankan survey results on October 3.</p>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: Japanese business sentiment dropped (services especially) in September (Reuters Tankan)

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