Global| Jul 01 2003Japanese Tankan Shows Good Improvement in Sentiment of Large Manufacturing Companies
Summary
According to the Bank of Japan's quarterly survey of business conditions--the Tankan--sentiment among executives of large manufacturing companies in Japan rose in June to minus 5 from minus 10 in March. This was better than consensus [...]
According to the Bank of Japan's quarterly survey of business conditions--the Tankan--sentiment among executives of large manufacturing companies in Japan rose in June to minus 5 from minus 10 in March. This was better than consensus estimates and the best showing since March 2001. These executives expect that sentiment will continue at this level in the next quarter. Rising stock prices in recent months and the lessening of concerns over the impact of SARS on trade as the World Health Organization lifted travel advisories for Singapore, Hong Kong and Beijing in May and June may have been factors in the improvement of sentiment.
Sentiment in the nonmanufacturing sector improved but to a lesser extent than in manufacturing. It rose to minus 13 from minus 14 in March.
Large companies in all industries plan to increase spending on fixed investment in the current fiscal year, ending March 2004, by 4.9% over fiscal 2003. In the March Tankan, executives had estimated a decline of 0.8% in investment spending for the current fiscal year.
| Current Business Conditions | June Q 2003 | March Q 2003 | June Q 2002 | Q/Q | Y/Y | 2002 | 2001 | 2000 |
|---|---|---|---|---|---|---|---|---|
| Large Manufacturing Companies | -5 | -10 | -18 | 5 | 13 | -20 | -23 | 4 |
| Large Nonmanufacturing Companies | -13 | -14 | -16 | 1 | 3 | -17 | -16 | -12 |
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