Japan: Business sentiment declines in third quarter
October 1, 2012
According to the quarterly TANKAN business survey elaborated by the Bank of Japan, sentiment among large manufacturers fell to minus 3 points in the third quarter, down from minus 1 point in the second quarter. The decline, however, undershot market expectations that had the business sentiment index sliding further to minus 4 points. A negative reading means that pessimists outnumber optimists. Meanwhile, confidence in non-manufacturing industries remained unchanged over the previous quarter at 8 points in the third quarter, which represents the highest reading since the second quarter of 2008. Going forward, large enterprises in the manufacturing sector anticipate conditions will remain subdued, with the forward-looking forecast index remaining unchanged over the previous quarter at minus 3 points. In addition, big manufacturers see the Japanese yen trading at an average of 79.0 JPY per USD by the end of the fiscal year 2012.