Japanese manufacturers were more positive about business conditions in October, according to a Reuters monthly poll on Wednesday, though they remain cagey about the speed of economic recovery in China.

Sentiment in the service sector eased, as the survey reflected, presenting Japan with uneven economic conditions.

The Reuters Tankan, closely tracking the Bank of Japan's quarterly business survey, showed the sentiment index for manufacturers was at plus 7 in October, up from plus 4 in September.

In the latest poll, 506 major non-financial firms were surveyed, with 241 companies responding anonymously between Sept. 25 and Oct. 4.

China, Japan's second-largest export market after the U.S., began announcing aggressive economic stimulus efforts on Sept. 24.

A wide cross-section of Japanese industries said business sentiments brightened, and in increases, it was led by chemicals and food industries.

"We are seeing a stronger-than-expected rebound in the electronics materials sector," a chemicals maker manager said in the poll.

Memory chip makers, in particular, have been selling well, according to a manager at an electronics firm.

Manufacturers expect their business sentiment to rise further to plus 9 in the next three months, said the survey.

However, managers across multiple sectors voiced concerns about the weak Chinese economy.

"Our clients are growing cautious about raising capital expenditures due to a Chinese economic slowdown," a machinery maker manager said.

The Reuters Tankan service-sector index fell for the fourth straight month in October to plus 20, from plus 23 in September, with both the transport and wholesale sectors experiencing the sharpest decline in sentiment. It was also the lowest since February last year.

"We have been unable to fully pass on higher energy costs and currency impacts to pricing," a wholesaler manager wrote.

Other factors mentioned by non-manufacturers were the slowing Chinese economy, unpredictable weather, and a stronger yen.

Despite this, service sector firms expect the index to rebound to plus 22 in January as a result of good investment in information systems and foreign tourist spending.

The Reuters Tankan indexes are achieved by subtracting the percentage of pessimists from the optimistic ones. A positive figure indicates optimists outnumber pessimists.

Japanese manufacturers were more positive about business conditions in October, according to a Reuters monthly poll on Wednesday, though they remain cagey about the speed of economic recovery in China.

Japanese manufacturers were more positive about business conditions in October, according to a Reuters monthly poll on Wednesday, though they remain cagey about the speed of economic recovery in China. Sentiment in the service sector eased, as the survey reflected, presenting Japan with uneven economic conditions. The Reuters Tankan, closely tracking the Bank of Japan's quarterly business survey, showed the sentiment index for manufacturers was at plus 7 in October, up from plus 4 in September. In the latest poll, 506 major non-financial firms were surveyed, with 241 companies responding anonymously between Sept. 25 and Oct. 4. China, Japan's second-largest export market after the U.S., began announcing aggressive economic stimulus efforts on Sept. 24. A wide cross-section of Japanese industries said business sentiments brightened, and in increases, it was led by chemicals and food industries. "We are seeing a stronger-than-expected rebound in the electronics materials sector," a chemicals maker manager said in the poll. Memory chip makers, in particular, have been selling well, according to a manager at an electronics firm. Manufacturers expect their business sentiment to rise further to plus 9 in the next three months, said the survey. However, managers across multiple sectors voiced concerns about the weak Chinese economy. "Our clients are growing cautious about raising capital expenditures due to a Chinese economic slowdown," a machinery maker manager said. The Reuters Tankan service-sector index fell for the fourth straight month in October to plus 20, from plus 23 in September, with both the transport and wholesale sectors experiencing the sharpest decline in sentiment. It was also the lowest since February last year. "We have been unable to fully pass on higher energy costs and currency impacts to pricing," a wholesaler manager wrote. Other factors mentioned by non-manufacturers were the slowing Chinese economy, unpredictable weather, and a stronger yen. Despite this, service sector firms expect the index to rebound to plus 22 in January as a result of good investment in information systems and foreign tourist spending. The Reuters Tankan indexes are achieved by subtracting the percentage of pessimists from the optimistic ones. A positive figure indicates optimists outnumber pessimists.

Japan manufacturers’ confidence improves in October, concerns about China persist

Japanese manufacturers grew more confident about business conditions in July, while sentiment in the service sector dulled, a Reuters monthly Tankan poll showed on Wednesday. This transmits a mixed economic outlook with varied sectoral performance.

The survey, which captured responses from 506 large non-financial firms, came out just two weeks ahead of the policy review by the Central Bank of Japan on July 30-31. Much attention is now focused on the BOJ for hints on impending interest rate hikes as the central bank raised rates in March for the first time since 2007 and trimmed bond-buying last month.

The BOJ will keep a close watch on its own tankan survey, short-term outlook data, and indications from other leading economic indicators that could confirm the sustainability of inflation and strong household consumption—perhaps driven by wage hikes. This could mediate their case for further rate hikes.

The Reuters Tankan survey, which closely tracks the BOJ's tankan, demonstrated that the sentiment index for manufacturers jumped by five points from June to stand at plus 11, and also the first rise in four months. However, manufacturers said pessimism is yet to fully flee as they predict the index will fall over the next three months to plus 9.

"Domestic price hikes have weakened consumption and a slowing Chinese economy has caused China-bound materials from the Middle East to make inroads into the Japanese market at low prices," a manager at a chemicals manufacturer wrote in the Reuters poll, conducted July 2-12, on condition of anonymity.

"The double punches of weak domestic demand and cheap import materials from overseas are curbing our sales volume."

A food processing company manager wrote: "Input prices have risen and remain elevated due to the weak yen as we struggle to transfer costs to our customers."

The Reuters Tankan index for the service sector slipped to plus 27 from plus 31, its first fall in three months. Non-manufacturers expect the index to inch up to plus 28 by October.

The Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A positive reading indicates a heftier number of optimists than pessimists.

Japanese manufacturers grew more confident about business conditions in July, while sentiment in the service sector dulled, a Reuters monthly Tankan poll showed on Wednesday.

Japanese manufacturers grew more confident about business conditions in July, while sentiment in the service sector dulled, a Reuters monthly Tankan poll showed on Wednesday. This transmits a mixed economic outlook with varied sectoral performance. The survey, which captured responses from 506 large non-financial firms, came out just two weeks ahead of the policy review by the Central Bank of Japan on July 30-31. Much attention is now focused on the BOJ for hints on impending interest rate hikes as the central bank raised rates in March for the first time since 2007 and trimmed bond-buying last month. The BOJ will keep a close watch on its own tankan survey, short-term outlook data, and indications from other leading economic indicators that could confirm the sustainability of inflation and strong household consumption—perhaps driven by wage hikes. This could mediate their case for further rate hikes. The Reuters Tankan survey, which closely tracks the BOJ's tankan, demonstrated that the sentiment index for manufacturers jumped by five points from June to stand at plus 11, and also the first rise in four months. However, manufacturers said pessimism is yet to fully flee as they predict the index will fall over the next three months to plus 9. "Domestic price hikes have weakened consumption and a slowing Chinese economy has caused China-bound materials from the Middle East to make inroads into the Japanese market at low prices," a manager at a chemicals manufacturer wrote in the Reuters poll, conducted July 2-12, on condition of anonymity. "The double punches of weak domestic demand and cheap import materials from overseas are curbing our sales volume." A food processing company manager wrote: "Input prices have risen and remain elevated due to the weak yen as we struggle to transfer costs to our customers." The Reuters Tankan index for the service sector slipped to plus 27 from plus 31, its first fall in three months. Non-manufacturers expect the index to inch up to plus 28 by October. The Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A positive reading indicates a heftier number of optimists than pessimists.

Japanese manufacturers show increased confidence while service sector sentiment declines

According to a poll, business sentiment of Japanese manufacturers and service-sector firms was the least pessimistic in nine months in November, as the world’s third-largest economy showed signs of pulling out of a coronavirus-induced recession.

World Business Watch: Japan manufacturers less pessimistic in November