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...
