Japan: Business sentiment remains positive but dips in Q4
Business sentiment among large manufacturers—according to the Bank of Japan’s closely watched Tankan survey—came in at plus 7 in Q4, down from plus 8 in Q3. In contrast, confidence among large non-manufacturing firms rose to 19 in Q4 from 14 in Q3. As such, the sentiment values remained above the zero-threshold separating pessimism from optimism regarding current business conditions.
Analysts at the EIU commented on the print:
“The latest Tankan survey results are consistent with our view that growth in manufacturing activity will decelerate in 2023. We expect slower growth in investment as well.”