Reuters Tankan report for June 2024: Manufacturing index +6 vs. prior +9

The monthly Reuters Tankan survey, a guide to the Bank of Japan’s quarterly tankan survey.

For June 2024:

• Manufacturers index is +6, from +9 in May
  • positive for the fourth consecutive month
  • Japanese manufacturers say their drop in confidence is due to higher materials costs.
• Non – manufacturers +31, from +26 in May
  • three month high

Outlooks:

• Manufacturers seen at +9 in September, and the non-manufacturers at +31

Some remarks reported by Reuters:

• “Passing on materials costs to customers and the increase in
  labour costs are sapping appetite for capital expenditure and
  other spending” a machinery maker manager

Concerns about the
knock-on effects of a scandal in the auto industry where Toyota, Mazda others have acknowledged
irregularities in vehicle certification tests:

• “The business environment surrounding industrial machinery
  is clearly changing for the worse,” wrote a manager in the auto
  sector. “It’s unclear how the certification issue will affect
  our business.”

***

The next Bank of Japan Tankan is due on July 1 at 8.50 am Tokyo time (2350 GMT and 1850 US Eastern time on the 30th June)

***

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.