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By Tetsushi Kajimoto
TOKYO (Reuters) – Confidence in Japanese business firms improved for the first time since August, while that of the sector improved for a second month, according to Reuters’ Tankan survey, which also highlighted a difficult outlook amid an asymmetrical economic recovery.
The monthly survey reflects an improvement seen in the third quarter in the Bank of Japan’s (BOJ) much-followed quarterly tankan survey.
Reuters’ latest Tankan, however, heralds a disruptive quarter, even as confidence rebounded in November, and confidence among automakers is expected to remain stable over the next three months as confidence in the sector deteriorates.
In a Reuters poll of 502 large and medium-sized companies, some of which responded on condition of anonymity, many companies complained about emerging raw fabric freight prices and the deterioration of Japan’s key markets, such as China.
The weakness of the Japanese yen has been one of the main factors testing living standards, as it drives up the value of imported goods, while the economy as a whole has also been held back by slow growth. global economy, sharp increases in interest rates and geopolitical tensions that have driven up the value of raw materials. estate.
The confidence index for brands came in at 6, up two points from last month, led by vehicles and food processors, according to the survey conducted Oct. 24-Nov. 2.
The index is expected to solidify in February.
The sector’s index rose to 27 from 24 last month, led by retail, data and communications, and others.
The index is expected to fall to plus 21 in the next three months, a harbinger of domestic income that has not restarted despite the end of COVID restrictions earlier this year.
Data released on Tuesday showed customer spending fell for the seventh straight month in September, suggesting a recovery in household income will be a long time coming.
Analysts expect Japan’s economy, the world’s third-largest, to slow in the third quarter, the first contraction in four quarters, according to a Reuters poll.
Reuters Tankan indices are calculated by subtracting the percentage of pessimistic respondents from positive respondents. A positive number that there are more optimists than pessimists.
(Reporting via Tetsushi Kajimoto; editing via Leslie Adler)