Japanese Manufacturers’ Business Sentiment Improves, But Still Pessimistic

Business sentiment among Japanese manufacturers rose to the highest level since four months but remained pessimistic amid the ongoing

Arslan Butt•Tuesday, August 18, 2020•1 min read

Japanese Manufacturers' Business Sentiment Improves, But Still Pessimistic

Business sentiment among Japanese manufacturers rose to the highest level since four months but remained pessimistic amid the ongoing coronavirus crisis. According to the latest edition of the Reuters Tankan survey, manufacturers’ business sentiment improved from -44 in July to -33 in August, the highest level since February.

However, the negative figure continues to indicate a sense of pessimism among respondents. Companies indicated that they were seeing a pick-up in demand but the extent of rebound in activity remains far lower than previously anticipated.

The business sentiment among manufacturers is expected to improve to -22 by November. However, the sentiment among services sector companies in Japan is expected to dip from -23 in August to -26.

Domestic demand is expected to remain under pressure in the coming months due to a cautious mood among consumers. In addition to the impact of the coronavirus pandemic weighing on businesses, there are also simmering concerns surrounding US-China tensions are keeping companies on edge.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.