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The monthly Reuters tankan survey indicates Japanese manufacturer's sentiment falling to a 2 year low in January with the sentiment index at +18 from December's +23. This was third consecutive monthly fall for the manufacturers' sentiment index to a 2 year low.

Japan Manufacturing

The service-sector index was +31 in January, unchanged from December. The survey showed that sentiment at both manufacturers and the service sector was seen deteriorating further in the coming three months. Japanese exporters complained aboutthe lack of demand in China and the United States and voiced concerns about the trade war between Japan's two major trading partners.

The polls were conducted between January 7 and 16, 2019.

"Global demand is becoming markedly sluggish," a manager at a transport equipment maker wrote in the survey. "The United States has not been performing well since the start of this fiscal year, but other countries like China, India and Mexico are slowing down as well in the latter half."

The service-sector index steady at 31 in January reflects firmness in private consumption, which accounts for about 60 percent of the Japanese economy. The service-sector index was however seen slipping to 27 in April.

The Reuters monthly Tankan poll seeks to track the Bank of Japan's (BOJ) tankan quarterly survey poll of 480 large and mid-sized companies (not all respond) . Tankan is the shorthand handle forkigyō tanki keizai kansoku chōsa, the quarterly poll of business confidence reported by the Bank of Japan on the status of the Japanese economy. 

Source: Reuters

From The TradersCommunity News Desk

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