Japan manufacturers' mood goes down notwithstanding economic revival

Japan manufacturers' mood goes down notwithstanding economic revival

In May, confidence among Japanese manufacturers headed south for the first time for nine months, having hit a decade-high level April, as a Reuters survey discovered,  demonstrating careful optimism in an emerging export-led economic revival.

The Reuters' monthly survey, tracking the Bank of Japan's major quarterly tankan, demonstrated confidence at service-sector firms. It reached a four-month peak, which is a hypothetical indication of a pickup in the country’s domestic demand.

The Reuters Tankan follows the previous week’s reports, which showed the Japanese economy expanded for a fifth straight quarter at the beginning of 2017, driven by exports along with private consumption. However, sluggish wage surge weighed on households.

In the survey of 527 large- and also mid-sized firms, carried out between May 9-19 in which 243 firms responded, in May, the overall sentiment index for manufacturers lost two points, tumbling to 24, suppressed by the food processing, chemicals industries and precision machinery.


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