TOKYO, Oct 13 (Businesshala) – Japanese manufacturers have become less positive about business conditions, while the outlook for the services-sector has improved, which hasn’t been seen since the start of the coronavirus pandemic, ReutersTunken for October The pole is shown.
Manufacturers were the least optimistic in six months, while services-sector mood remained in contraction as Japan’s economy grapples with the impact of global chip shortages and rising raw material costs.
The monthly survey, which closely follows the Bank of Japan’s (BOJ) “Tankon” quarterly survey, found that the coming three months are likely to remain positive for manufacturers and grow sharply for non-makers.
A survey of 503 large and medium-sized companies from September 29 to October 8, of which 267 responded, showed a mixed picture, with some firms struggling to overcome the pandemic, while others reeling from strong global demand. was being benefited.
A manager at a precision machinery manufacturer said, “While business has not returned to the pre-coronavirus state, the worst of the pandemic is over and conditions are on a recovery trend.”
The Businesshala Tankan sentiment index for manufacturers fell to 16 on October 18 from a month earlier – its lowest level since April – while the services index rose from minus 2 to 1.
(Click for detailed table of results)
The BOJ’s latest tankn trade survey for July-September, released this month, showed that business moods at large manufacturers improved for the fifth consecutive quarter, with manufacturers relying on strong global demand.
ReutersTunken showed firms were suffering from rising raw material and energy prices, which are putting pressure on corporate profit margins in the world’s third-largest economy.
One manager of a food manufacturer wrote in the survey, “Spending on food is starting to slow down.”
“While raw material prices are rising, this is not being reflected in selling prices as the deflationary mindset of consumers remains strong.”
Japan’s wholesale rate of inflation rose to a 13-year high here in September, driven by a rise in global commodity prices and a rise in import costs due to a weaker yen, BOJ data showed.
Businesshala Tanken showed that global chip and parts shortages are taking a toll on manufacturers’ business conditions, particularly among automakers, with the auto/transportation equipment sector reading -31 in October falling from -14 in September.
“Demand for semiconductor-related products is strong, but we are being hit by production cuts at car companies and factory machinery firms,” said the manager of a rubber manufacturer.
Others such as steel makers also said they were seeing a drop in orders due to semiconductor shortages. (Reporting by Daniel Lusink; Additional reporting by Kantaro Komiya; Editing by Christopher Cushing)