Reuters Tankan shows manufacturing index dipping in November to +5 (prior +7)

Reuters Tankan is a monthly report whereas the Bank of Japan Tankan is quarterly (more on these two surveys below).

Respondents citing worries over China and … wait for it … high inflation.

November manufacturing index +5

• prior +7 in October

Non-manufacturing +19 in November, easing for the 5th consecutive month

• prior +20

Outlooks:

• Manufacturing index seen at +6 in February
• non-manufacturing seen at +25

More:

• “Japanese automakers’ slump in the Chinese market is a
  concern for the auto
  parts business and environment-related
  products remained
  lacklustre due to China’s sluggish market”
• “Although
  there is demand, material prices are gradually
  rising, putting
  pressure on profit”
• some respondents
  mentioned clients delaying investment
  decisions before the
  outcome of the U.S. presidential election
• extreme weather hurting service-sector confidence. One bright
  spot supporting
  sentiment was inbound tourism.

***

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.