SaltWire's Atlantic regional weather forecast for November 7, 2023 | SaltWireTOKYO - Japanese manufacturers' business confidence improved for the first time since August while service-sector mood rose for a second month, according to the Reuters Tankan poll, which also highlighted a challenging outlook amid a patchy economic recovery.
The latest Reuters Tankan, however, pointed to a tough quarter ahead even as confidence perked up in November with manufacturers' mood expected to hold steady over the coming three months while service-sector morale was seen deteriorating. The weak Japanese yen has been a major driver of cost-of-living pressures as it boosts the price of imported goods, while the broader economy has also been hampered by slow global growth, sharply higher rates abroad and geopolitical tensions pushing up the price of commodities.
The index is expected to fall to plus 21 over the coming three months, boding ill for domestic consumption which has failed to fire up despite the end of COVID curbs earlier this year.