Japan data – Reuters Tankan shows Large Manufacturing and Non-manufacturing sentiment slip

<p>Large Manufacturing sentiment index is +3 in July vs. +8 in June</p><ul><li>first drop in 6 months</li><li>many firms cited chip shortages and the elevated costs of raw materials as negative factors</li><li>manufacturers' sentiment seen at +7 in 3 months time</li></ul><p>and Non-manufacturing sentiment index is +23 in July vs. +24 in June</p><ul><li>the second consecutive month of decline</li><li>service sector sentiment seen at +25 in the coming 3 months</li></ul><p>Commentary from the report:</p><ul><li> "The global economy is grappling with things like U.S.-China trade tension and the prolonged war in Ukraine, making for an uncertain outlook. At the same time, competition is intensifying both in domestic and overseas markets," a machinery maker manager wrote in the comment section of the survey. </li><li>"Business is good because sales remain solid with restaurants, many of whom are our main customers, thanks to a rise in inbound tourism," wrote a manager at a wholesale firm. </li></ul><p>—</p><p>The Reuters Tankan is a quarterly survey conducted by Reuters news agency in collaboration with the International University of Japan.</p><ul><li>is similar to the Tankan survey conducted by the Bank of Japan, which is a quarterly survey of business sentiment among Japanese companies</li><li>the Reuters Tankan has a wider coverage of industries and is not limited to large corporations</li><li>survey is based on interviews with executives of about 500 Japanese companies, covering a range of industries and size</li><li>questions asked in the survey cover various aspects of the economy such as sales, profits, capital expenditure, hiring plans, and inflation expectations</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.