Japanese manufacturers’ sentiment improved for the second consecutive month in June, as persistent semiconductor demand supported chemicals and machinery makers, the latest Reuters Tankan survey showed.

Chip Demand Drives Gains

Industries benefiting from strong chip demand led gains in the manufacturers’ confidence, with the index for the chemicals sector rising to plus-20 from plus-6.

A boost from chip demand was also noted by some electronics and machinery firms. The June survey, conducted from June 3 to June 12, received responses from 215 out of 490 firms polled.

Non-manufacturers’ sentiment rose to plus-32 from plus-29, driven by stronger confidence in the real estate and construction sector.

Looking ahead, manufacturers expect sentiment to remain stable, with the index forecast to stay at plus-13 in September. Non-manufacturers are more cautious, with their index projected to fall to plus-19, reflecting concerns over geopolitical risks and supply chain challenges.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.