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Japan's mixed business sentiment highlights patchy economic outlook: Reuters poll

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Japan's mixed business sentiment highlights patchy economic outlook: Reuters poll

TOKYO - Japanese manufacturers became more confident about business conditions in July whereas those in the service sector cooled, the monthly Reuters Tankan survey showed on Wednesday, reflecting a patchy economic outlook.

The central bank will scrutinise its own tankan - or short-term outlook - as well as other data for signs of a sustained rate of inflation and strong household consumption backed by wage hikes, which could strengthen the case for more rate hikes. "The double punches of weak domestic demand and cheap import materials from overseas are curbing our sales volume."

The Reuters Tankan service-sector index fell for the first time in three months, to plus 27 from plus 31 a month earlier. Non-manufacturers expect the index to be plus 28 in October.

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