Monday, October 25, 2021
اُردُو نیوز Newspaper Live-TV(UK) Live-TV(PK)
اُردُو نیوز Newspaper
Live-TV(UK) Live-TV(PK)

Japan manufacturers' mood improves to hit to one-year high: BOJ tankan

Japan manufacturers' mood improves to hit to one-year high: BOJ tankan
December 14, 2016
TOKYO - Big Japanese manufacturers' sentiment improved for the first time in six quarters in the three months to December to hit a one-year high, a closely watched central bank survey showed, as stock gains and yen falls brightened prospects for the export-reliant economy. Companies also maintained their upbeat spending plans, the Bank of Japan's "tankan" quarterly survey showed on Wednesday, reinforcing market expectations that the Bank of Japan will hold off on expanding stimulus measures in the coming months. But service-sector confidence was unchanged from three months ago as bad weather hurt private consumption, the survey showed, underscoring the fragile and patchy nature of recovery in the world's third largest economy. The headline index measuring big manufacturers' business sentiment rose to plus 10 from plus 6 three months ago, the tankan survey showed, matching a median market forecast and hitting the highest level since December 2015. "Manufacturing sentiment is doing well, reflecting a recovery in global trade," said Hidenobu Tokuda, senior economist a Mizuho Research Institute. "I think the economy will continue to grow due to exports and public works spending. The chance of additional monetary easing has receded." The BOJ is likely to keep monetary policy steady and give a more upbeat view of the economy at next week's rate review, reflecting brighter prospects for global trade, sources have told Reuters. Auto and machinery makers saw sentiment brighten in the survey, taken days after the U.S. presidential election last month, suggesting that sharp yen falls triggered by the election of Donald Trump spurred hopes for higher earnings. Big firms plan to increase capital expenditure by 5.5 percent for the current fiscal year to March 2017, slightly below projections made three months ago but in line with downward revisions that tend to occur at year-end, analysts say. "Capital spending held firm. Taken together this tankan confirmed a gradual economic recovery, which backs up the BOJ's upbeat view," said Takeshi Minami, chief economists at Norinchukin Research Institute. "It should be taken as another factor for the central bank to stand pat on policy for the time being." DRAG FROM CONSUMPTION Despite more than three years of aggressive money printing by the BOJ, Japan's economy has failed to emerge sustainably from the doldrums as soft global demand and slow wage growth weigh on exports and private consumption. The tankan showed big non-manufacturers' mood was flat from three months ago at plus 18, as sentiment soured for restaurants, retailers and hotels hurt by soft consumption. Big manufacturers and non-manufacturers expect business conditions to worsen slightly in the coming three months, suggesting that companies remain cautious on whether the positive market trend will continue. But recent data offer signs of hope. Japanese firms' order books rose in November on robust Asian demand, and consumption edged up after slumping on bad weather that kept shoppers home. Big manufacturers based their profit estimates on an assumed average dollar/yen rate of 104.90 for the current fiscal year. That is much stronger than current levels around 115 yen, suggesting that corporate profits may be revised up sharply if the current weak-yen trend continues, analysts say. -Reuters
تازہ ترین خبریں حاصل کرنے کے لیے فوری اطلاع کی اجازت دیں

آپ کسی بھی وقت دائیں طرف نیچے بیل آئیکن پر صرف ایک کلک کے ذریعے آسانی سے سبسکرائب کر سکتے ہیں۔