Sentiment among Japan’s big manufacturers fell for the first time in nearly two years

2022-06-05 0 By

According to the Bank of Japan’s Tankan survey of the corporate economy, the sentiment index of large Japanese manufacturers fell 3 points from the previous quarter to 14 points in the first quarter of this year.It was the first decline since the second quarter of 2020.According to the survey, due to the russia-Ukraine conflict and other factors, the international prices of energy and other commodities rose further in the first quarter, and manufacturing enterprises faced increased cost pressure.Big business sentiment fell in nine of Japan’s 16 manufacturing sectors during the quarter, with the automotive sector dropping seven points to minus 15.In the non-manufacturing sector, the service sector was hit again by the impact of the new coronavirus pandemic, with the sentiment index of large non-manufacturing companies falling 1 point to 9 points.The survey also showed an industry-wide index of business sentiment, which includes small, medium and large companies, fell two points to zero in the first quarter.The Tankan index, published quarterly, is an important indicator of economic sentiment in Japan.Among them, the confidence index of large manufacturing enterprises is the most representative.A positive reading means more companies are optimistic than pessimistic.The survey was conducted from February 24 to March 31 among 9,362 large, medium and small companies nationwide.