Japan Reuters Tankan – Manufacturing index +9 in April from -1 in March
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Japan Reuters Tankan
Japanese manufacturers reported a rebound in sentiment in April, according to the latest Reuters Tankan survey, but the outlook for the next quarter has turned gloomy amid rising concerns over U.S. tariffs. The manufacturers’ index rose to +9 from -1 in March, indicating more optimism than pessimism. However, sentiment is expected to weaken again by July, with the index projected to slip back to zero.
The shift in mood reflects growing caution as companies brace for the fallout from Trump’s sweeping tariffs, including a 25% duty on car and truck imports and a 24% tariff on Japanese goods—temporarily reduced to 10% for 90 days. Export-oriented sectors like autos and machinery voiced particular concern, citing a drop in orders and hesitation among clients to invest.
Uncertainty around U.S. trade policy was the dominant theme, though some firms also flagged weak Chinese demand as a headwind, along with low-priced Chinese goods reportedly undercutting the domestic market.
Sentiment among non-manufacturers remained stronger, with the index rising to +30 in April from +25 in March, though that too is expected to decline to +21 by July. Real estate and IT firms remained upbeat, but shipping companies warned of rising labour costs and declining volumes linked to U.S.-China trade tensions.
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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.
Read full post at forexlive.com
Japan Reuters Tankan
Japanese manufacturers reported a rebound in sentiment in April, according to the latest Reuters Tankan survey, but the outlook for the next quarter has turned gloomy amid rising concerns over U.S. tariffs. The manufacturers’ index rose to +9 from -1 in March, indicating more optimism than pessimism. However, sentiment is expected to weaken again by July, with the index projected to slip back to zero.
The shift in mood reflects growing caution as companies brace for the fallout from Trump’s sweeping tariffs, including a 25% duty on car and truck imports and a 24% tariff on Japanese goods—temporarily reduced to 10% for 90 days. Export-oriented sectors like autos and machinery voiced particular concern, citing a drop in orders and hesitation among clients to invest.
Uncertainty around U.S. trade policy was the dominant theme, though some firms also flagged weak Chinese demand as a headwind, along with low-priced Chinese goods reportedly undercutting the domestic market.
Sentiment among non-manufacturers remained stronger, with the index rising to +30 in April from +25 in March, though that too is expected to decline to +21 by July. Real estate and IT firms remained upbeat, but shipping companies warned of rising labour costs and declining volumes linked to U.S.-China trade tensions.
***
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.
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