Large Manufacturing sentiment index is +3 in July vs. +8 in June
- first drop in 6 months
- many firms cited chip shortages and the elevated costs of raw materials as negative factors
- manufacturers' sentiment seen at +7 in 3 months time
and Non-manufacturing sentiment index is +23 in July vs. +24 in June
- the second consecutive month of decline
- service sector sentiment seen at +25 in the coming 3 months
Commentary from the report:
- "The global economy is grappling with things like U.S.-China trade tension and the prolonged war in Ukraine, making for an uncertain outlook. At the same time, competition is intensifying both in domestic and overseas markets," a machinery maker manager wrote in the comment section of the survey.
- "Business is good because sales remain solid with restaurants, many of whom are our main customers, thanks to a rise in inbound tourism," wrote a manager at a wholesale firm.
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The Reuters Tankan is a quarterly survey conducted by Reuters news agency in collaboration with the International University of Japan.
- is similar to the Tankan survey conducted by the Bank of Japan, which is a quarterly survey of business sentiment among Japanese companies
- the Reuters Tankan has a wider coverage of industries and is not limited to large corporations
- survey is based on interviews with executives of about 500 Japanese companies, covering a range of industries and size
- questions asked in the survey cover various aspects of the economy such as sales, profits, capital expenditure, hiring plans, and inflation expectations
