Bank of Japan business confidence survey highlights slowdown

AFP, TOKYO: Confidence among Japan's small firms and non-manufacturers worsened during the second quarter of the year, a central bank survey showed Friday, as the yen's surge threatened profits and growth in the world's number three economy. The Bank of Japan's closely watched Tankan report also found that sentiment among major manufacturers remained stuck at its lowest levels since Prime Minister Shinzo Abe kicked off his much-vaunted programme to boost growth, dubbed Abenomics, over three years ago. The survey of more than 10,000 companies is the most comprehensive indicator of how Japan Inc is faring, and marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable. The poor reading will heap pressure on policymakers to unveil more stimulus, as evidence of a slowdown in the economy piles up and as the yen surges again in the wake of Britain's shock vote last week to quit the European Union. A stronger currency hits Japan's exporters especially hard as it shrinks the value of the profits they earn overseas when converted back to yen. Shortly before the BoJ report was published, official data showed household spending fell in May and Japanese inflation dropped for a third straight month, in a fresh blow to Abe's faltering war on deflation. Industrial production also dived in May for the first time in several months while the country logged a trade deficit. The Tankan report showed confidence among the nation's small- and medium-sized manufacturers fell to minus five from minus four the previous quarter, while that of big non-manufacturing firms dropped to 19 from 22. Sentiment among major manufacturers came in at plus six in the latest report, unchanged from March and stronger than expectations, but still at its lowest levels in several years.

Bank of Japan business confidence survey highlights slowdown

AFP, TOKYO: Confidence among Japans small firms and non-manufacturers worsened during the second quarter of the year, a central bank survey showed Friday, as the yens surge threatened profits and growth in the worlds number three economy. The Bank of Japans closely watched Tankan report also found that sentiment among major manufacturers remained stuck at its lowest levels since Prime Minister Shinzo Abe kicked off his much-vaunted programme to boost growth, dubbed Abenomics, over three years ago. The survey of more than 10,000 companies is the most comprehensive indicator of how Japan Inc is faring, and marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable. The poor reading will heap pressure on policymakers to unveil more stimulus, as evidence of a slowdown in the economy piles up and as the yen surges again in the wake of Britains shock vote last week to quit the European Union. A stronger currency hits Japans exporters especially hard as it shrinks the value of the profits they earn overseas when converted back to yen. Shortly before the BoJ report was published, official data showed household spending fell in May and Japanese inflation dropped for a third straight month, in a fresh blow to Abes faltering war on deflation. Industrial production also dived in May for the first time in several months while the country logged a trade deficit. The Tankan report showed confidence among the nations small- and medium-sized manufacturers fell to minus five from minus four the previous quarter, while that of big non-manufacturing firms dropped to 19 from 22. Sentiment among major manufacturers came in at plus six in the latest report, unchanged from March and stronger than expectations, but still at its lowest levels in several years.