The Reuters Tankan is monthly and is aimed at pre-empting the Bank of Japan’s own tankan report, which is quarterly.
Manufacturing sentiment index +2 (prior +5)
- this is the worst since January 2021
- third monthly decline in a row
non-Manufacturing sentiment index +20 (prior +15)
- the best reading since Oct 2019
Manufacturers expect their business conditions to improve over the coming three months
- index seen at +7 in February
- index seen at +19 in February
Select comments from the report conveyed by Reuters:
- “Rising costs of crude oil and steel materials on top of the Ukraine crisis and escalating U.S.-China trade frictions have all made our clients cautious about capital expenditure,” wrote a manager at a machinery maker on condition of anonymity.
- “China’s slowdown and prolonged slump in auto production due to chip shortages and elevated costs of steel materials and energy have prevented increased sales from boosting profits,” a manager at another machinery maker wrote in the survey.