Japanese manufacturers’ sentiment remained relatively upbeat in July, supported by solid semiconductor demand, while confidence among non-manufacturers fell as the Middle East conflict, a weak yen and rising interest rates pushed up costs, the latest Reuters Tankan survey showed.
Manufacturers’ Sentiment Index
The monthly poll, a leading indicator of the Bank of Japan’s quarterly Tankan business survey, showed that the manufacturers’ sentiment index was unchanged at plus-13 in July from June. Manufacturers reported a recovery in the semiconductor market, including in memory-related demand, as well as rapidly expanding orders for products used in chip applications and AI servers.
Orders for electronic components were also rising broadly. A manager at a precision machinery maker said, “Order volumes and values are at levels we’ve never seen before, and we’re concerned about production capacity.”
Non-Manufacturers’ Sentiment Index
The non-manufacturers’ sentiment index fell to plus-25 from plus-32, weighed down by cost pressures and uncertainty over the U.S.-Israeli war with Iran. A manager in the service sector said, “Although signs of a resolution to the Middle East issue are beginning to emerge, the situation has not yet recovered.”
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
