TOKYO, Sept 20 (Askume) – Business confidence among Japan’s big manufacturers likely remained stable in the three months to September, while confidence among non-manufacturers weakened slightly, a Askume survey showed on Friday, reflecting concerns over global fears of an economic slowdown.
The Bank of Japan’s (BOJ) quarterly Tankan Business Confidence Survey is expected to show the composite index of sentiment among large manufacturers at +13 in September, unchanged from June’s survey, a survey of 16 economists found. Read more
Economists at Daiwa Research Institute said that “China’s economic slowdown and the impact of typhoons have hit business confidence among major manufacturers,” while a recovery in auto production has supported morale.
The confidence index of large non-manufacturing companies, though slightly lower, remained steady above 32 points in September and was above 33 points in the June survey.
Analysts said while strong demand and wage recovery supported sentiment in the services sector, labour shortage and natural calamities hurt their sentiment.
Capital expenditure plans by large companies are expected to rise by 11.9% for the current financial year ending March 2025, higher than the 11.1% forecast in the June survey.
The survey showed that confidence in the outlook declined slightly among both large manufacturers and non-manufacturers.
The Bank of Japan will release the Tankan survey on October 1 at 8:50 am (2350 GMT on September 30).
After the Bank of Japan kept short-term interest rates steady on Friday , the market is paying close attention to the timing and pace of future interest rate hikes by the Bank of Japan.
The survey said another data source may show that the Tokyo region’s core consumer price index (CPI) data, which excludes volatile fresh foods, rose 2.0% year-on-year in September, down from August’s 2.4%.
The government will release consumer inflation data for the Tokyo region on Sept. 27.
