Japan data – Reuters Tankan for July: Manufacturers Index +11 (prior +6)

Reuters Tankan survey for June 2024

Manufacturers sentiment index +11 in July vs +6 in June

• first gain in four months
• manufacturers expect the index to fall back to plus 9 over the next three months

Service-sector +27, down from June’s +31

Reuters report some comments from the survey:

• “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”
• “The double punches of weak domestic demand and cheap import
  materials from overseas are curbing our sales volume.”
• “Input prices have
  risen and remain elevated due to the weak yen as we struggle to
  transfer costs to our customers.”

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Reuters Tankan is a monthly survey that seeks to track the Bank of Japan’s tankan quarterly survey

• respondents spoke on the condition of anonymity
• Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A positive reading means optimists outnumber pessimists.

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