The Bank of Japan’s tankan survey showed the mood among big manufacturers soured for a second straight quarter in the three months to June. – AFPpix: Confidence at Japanese manufacturers in July was subdued, a Reuters poll showed, reflecting pressure from a problematic chip shortage, China’s heavy pandemic response and a weak yen that is making imported materials increasingly expensive.
The poll of 495 big and midsize firms between June 29 and July 8, of which 248 responded, showed business managers were worried about the fallout from China’s Covid-19 curbs and a persistent chips and parts shortage. Some analysts believe it may take time before Japanese manufacturing and especially the key car sector will benefit from a recovery of economic activity in Shanghai, as the risk of new Covid-19 curbs remains.The index is seen inching up to 13 in October, though that is likely largely to depend on whether conditions in the autos/transport equipment sub-sector will improve. Its sentiment remained deeply negative in July.