TOKYO – Japanese manufacturers’ confidence fell to a five-month low in September, as the latest wave of COVID-19 put new pressure on the world’s third-largest economy, a Reuters tankn poll showed.
Sentiment among manufacturers fell as export-dependent firms such as carmakers faced global chip shortages, according to the monthly survey, which closely tracks the Bank of Japan’s (BOJ) next October 1 tanken quarterly survey.
The survey showed that confidence among services sector firms has eroded, but appears to be improving again in the next three months.
A bleak outlook on current conditions suggests Japan’s economic growth may slow in the third quarter, as official data last week showed it expanded an annualized 1.9 percent in the three months through June, beating expectations. Gave.
A survey of 503 large and medium-sized companies conducted between September 1 and 10, of which 264 responded, showed that companies are grappling with sluggish demand both at home and abroad in the form of a slowdown in China and prospects in emerging markets. Overwhelmed.
The manager of a machinery manufacturer wrote in the poll, “The production and sales activity cannot be carried out due to the halt in the supply of parts.”
“Semiconductor shortages and coronavirus lockdowns are having a major impact in Southeast Asia.”
The Reuters token sentiment index for manufacturers slipped to 18 in August from a three-and-a-half-year high of 33, hitting its lowest level since April. The survey showed the services index fell to minus 2 from 5 last month. (For detailed table of results, click here)
The BOJ’s own “Tancan” business survey, released in July, showed that business confidence of large manufacturers was expected to remain positive in the third quarter after hitting a two-and-a-half-year high in the second quarter.
In a Reuters report, firms reported the deepening impact of global chip shortages, as the health crisis continued to scuttle activity and broadened demand, with some saying they were suffering from higher raw material prices.
“The effects of rising raw material prices are beginning to be felt, while the Chinese and US economies are witnessing slowdowns,” the manager of a chemical manufacturer wrote in the survey.
A Reuters Typon poll showed business confidence of manufacturers was seen largely stable at 19 in December, while services sector firms were expected to rise to 7.
“There are no reservations for overnight stays and banquets because of the fifth wave of the coronavirus,” said a manager at a service sector firm, in a sign of the fragility in private consumption, which accounts for more than half of Japan’s economy. Is.
The Reuters Typon Index reading is calculated by subtracting the percentage of respondents who say the situation is bad from those who say they are good. A positive reading means that optimists outweigh pessimists.
by Daniel Lusink
This News Originally From – The Epoch Times