Reuters November Tankan - Japanese factory mood hits 4-year high on weak yen, auto rebound
Japan’s manufacturers grew the most upbeat in nearly four years this month, lifted by a softer yen and solid global demand for cars and electronics, according to the November Reuters Tankan survey.
The manufacturers’ sentiment index jumped to +17 in November,
- up sharply from +8 in October and marking its strongest reading since early 2022.
- Electronics firms led the surge — their sub-index soared to +25 from +5, reflecting improved chip-related orders and export competitiveness from the weaker currency.
- The auto and transport machinery sector also saw a large rebound, rising to +27 from +9, helped by stable orders and a cheaper yen.
Still, some respondents warned that supply disruptions and sluggish sales could cap momentum in coming months. The overall manufacturing index is expected to ease to +15 by February, with firms citing weaker output at major automakers such as Honda and Nissan, both recently cutting production targets.
Business leaders also voiced concern over U.S. President Trump’s new tariff measures and their potential to cloud export outlooks amid rising trade frictions with China.
By contrast, Japan’s non-manufacturing sentiment held steady at +27, underpinned by robust tourism and service-sector demand. The outlook for February remains unchanged, pointing to continued strength in hospitality and domestic consumption.
