Japan Business Confidence Q3 2016


Japan: Business sentiment unchanged for second consecutive month in Q3

October 3, 2016

According to the Bank of Japan’s quarterly TANKAN business survey, sentiment among large manufacturers was stable at 6 in Q3. The print matched the result observed in the previous two quarters but was below the reading of 7 that market analysts had expected. Manufacturers’ sentiment remains above the 0-threshold, which means that optimists outnumber pessimists. Rising doubts about Prime Minister Shinzo Abe’s ability to jumpstart the economy and a strong yen are limiting any upswing in economic confidence among manufacturers.

Confidence in non-manufacturing industries declined in Q3, falling from 19 in Q2 to 18 and marked the lowest reading since Q4 2014.

The Bank of Japan’s commitment to avoid deflation and maintain borrowing costs at low levels is cushioning negative spillovers from weak global demand, a strengthening currency and rising domestic uncertainties. Therefore, confidence among large enterprises in the manufacturing sector about the country’s economic outlook in the next three months was unchanged at the previous quarter’s 6. Meanwhile, large manufacturers forecast that the Japanese yen will average 107.4 JPY per USD in the second half of the fiscal year 2016 (ending March 2017), which is below the 111.4 JPY per USD forecast in the previous quarter.

Author: Ricard Torné, Lead Economist

Sample Report

Looking for forecasts related to Business Confidence in Japan? Download a sample report now.


Japan Business Confidence Chart

Japan Business Confidence Q3 2016

Note: Quarterly index of business sentiment. Values above 0 for manufacturers (actual result) indicate a positive assessment of the current business conditions. Values above 0 for manufacturers (forecast) indicate a positive assessment for the next quarter’s business prospects.
Source: Bank of Japan (BoJ).

Japan Economic News

  • Japan: Composite PMI slumps in February, raising chances of technical recession in Q1

    February 21, 2020

    The Jibun Bank composite Purchasing Managers’ Index (PMI) slumped to 47.0 in February from a revised 50.1 in January (previously reported: 51.1), according to a flash reading released on 21 February, suggesting private sector activity declined from the previous month at the fastest pace in nearly six years. The services PMI dropped to 46.7 in February from a revised 51.0 in January (previously reported: 52.1).

    Read more

  • Japan: Core inflation ticks up in January

    February 21, 2020

    The core consumer price index increased 0.1% in month-on-month seasonally-adjusted terms in January, matching December’s result.

    Read more

  • Japan: Core machinery orders fall in December

    February 19, 2020

    Core machinery orders—which cover the private sector, exclude volatile orders and are a leading indicator for capital spending over the coming three- to six-month period—fell in December for the fifth time in six months. Specifically, core machinery orders dropped 12.5% in December compared to the previous month in seasonally-adjusted terms, falling faster than market analysts’ expectation of a 9.0% decrease and contrasting the 18.0% increase in January. In year-on-year terms, core machinery orders fell 3.5% in December, contrasting the 5.3% increase in November.

    Read more

  • Japan: Exports drop for 14th month running in January

    February 19, 2020

    Yen-denominated merchandise exports fell 2.6% in January in year-on-year terms, after dropping 6.3% in December.

    Read more

  • Japan: Economy contracts sharply at the end of 2019

    February 17, 2020

    The economy contracted 6.3% in Q4 compared to the previous quarter in seasonally-adjusted annualized terms.

    Read more

More news

Search form