Sentiment of major manufacturers plummeted in the second quarter in the wake of the 11 March earthquake, according to the quarterly Tankan survey released by the Bank of Japan on 1 July. It is the first survey that fully reflects the impact of the triple disaster among large Japanese companies, as the previous appraisal was partially conducted before the quake. Business confidence among large manufacturers plunged from plus 6 points in the first quarter to minus 9 points in the second, which represents the lowest level since Q1 2010, but in any case, was not as deep as the record-low of minus 58 recorded in Q1 2009 in the midst of the financial crisis. In addition, the outturn came in below market expectations of a decline of 7 points. A negative number means pessimists outnumber optimists. Despite the drop in confidence, the Tankan survey suggests a V-shaped recovery, as big manufacturers are forecasting business sentiment to improve to plus 2 in the upcoming quarter, which is consistent with the string of recent positive economic indicators. Nevertheless, some analysts warn about the possibility of power shortages during the summer, which could drag down sentiment in the corporate sector and jeopardize the anticipated fast recovery. In addition, the survey also showed large companies planned to boost their capital spending by 4.2% in the financial year ending in March 2012, up sharply from a 0.4% cut planned in the previous survey.
Japan Business Confidence
Business confidence tumbles after quake
July 1, 2011
Looking for forecasts related to Business Confidence in Japan? Download a sample report now.
Japan Economic News
October 12, 2016
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) declined for the first time in three months in August.
October 4, 2016
Consumer sentiment rose from August’s 42.0 to 43.0 in September.
October 3, 2016
According to the Bank of Japan’s quarterly TANKAN business survey, sentiment among large manufacturers was stable at 6 in Q3.
September 30, 2016
In August, the core consumer price index was flat compared to the previous month, which was above the 0.2% decline in July.
September 30, 2016
In August, industrial production expanded 1.5% over the previous month in seasonally-adjusted terms, which contrasted July’s 0.4% decrease (previously reported: 0.0% month-on-month).