Giappone Reuters Tankan Index

The Reuters Tankan sentiment index for Japan's manufacturers fell to +5 in November 2024 from +7 in October amid growing concern over business conditions, driven by China's economic slowdown and ongoing inflationary pressures. Respondents also highlighted volatility in currency markets and uncertainty surrounding the U.S. presidential election as additional sources of risk. One manager expressed concern over the slump in Japanese automakers' sales in China, noting that this downturn was affecting the auto parts industry, while demand for environmentally-related products remained sluggish due to weak Chinese market conditions. Another respondent mentioned that rising material costs were gradually squeezing profits, despite continued demand. Looking ahead, manufacturers expect only a modest improvement in business sentiment over the next three months, with the index forecast to rise to +6. The monthly Reuters poll serves as an early indicator for the BOJ's quarterly Tankan survey.