Japan’s factory mood in July hits highest since late 2018

TOKYO (REUTERS) - Japanese manufacturers' business confidence rose in July to hit a more than two-and-a-half-year high, as the country's export-driven recovery remained intact thanks to solid global demand, the Reuters Tankan poll showed. But in a worrying sign, service-sector sentiment turned pessimistic, as firms struggled with the fallout from the coronavirus crisis, according to the poll, which tracks the Bank of Japan's (BOJ) closely watched tankan quarterly survey. "The global economy is showing signs of recovery from the impact of the coronavirus pandemic," a manager at a machinery maker wrote in the poll. "But the outlook remains uncertain, as our customers are putting off business spending decisions because their budgets are on a declining trend." The Reuters Tankan sentiment index for manufacturers rose to 25 from 22 in June, its highest since November 2018, the poll conducted June 30-July 9 showed. The service index fell to minus 3 from a flat reading the prior month. The Reuters Tankan index readings are calculated by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessi...

Japan manufacturers remain optimistic in June: Reuters Tankan

TOKYO (REUTERS) - Business confidence levels of Japanese manufacturers and service sector firms were little changed in June from the prior month, highlighting the fragile and uneven state of the country's coronavirus recovery, a Reuters survey showed. While manufacturers' mood remained positive thanks to strong overseas demand, it was forecast to be slightly lower three months from this month, according to the Reuters Tankan poll, which tracks the Bank of Japan's (BOJ) closely watched tankan quarterly survey. The Reuters Tankan sentiment index for manufacturers edged up to 22 from 21 in May, while the mood in the service sector was more dour. The service index was flat, down from 2 the prior month, the poll conducted June 3-14 showed. The Reuters Tankan index readings are calculated by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists. Among manufacturers, buoyant sentiment at chemical and metal product makers offset less favourable conditions in sectors such as textiles and paper, according to the survey of 481 large- and mid-sized companies, in which 238 firms responded o...