TOKYO - Japanese big manufacturers’ business confidence worsened to a six-year low in the July-September quarter, a central bank survey showed, a sign the bitter U.S.-China trade war is taking a heavier toll on the export-reliant economy.
The weak readings will keep the central bank under pressure to extend more monetary support for a fragile economy when its board meets for a rate review on Oct. 30-31. “Capital expenditure is also firm. I don’t think today’s data is gloomy enough to further heighten market expectations of near-term monetary easing.”
The big non-manufacturers’ sentiment index stood at plus 21, worsening from plus 23 in June and roughly matching a median market forecast for plus 20.Both big manufacturers and non-manufacturers expect sentiment to worsen in October-December, as overseas growth shows little sign of pick-up and the domestic sales tax hike seen hurting household spending.
Capital expenditure has been among the few bright spots in Japan’s economy as non-manufacturers continue to invest heavily on automation to cope with a tight labor market, offsetting the weakness in manufacturers’ spending.
Your Allies dragging you down... Lol.