ZCZC
BCN-03
JAPAN-ECONOMY-ENTERPRISES-BUSINESS-TANKAN
Japan business confidence drops in April: BoJ survey
TOKYO, April 1, 2019 (BSS/AFP) – Confidence among Japan’s biggest
manufacturers fell sharply this quarter, the Bank of Japan’s quarterly
business survey showed Monday, suggesting a stuttering recovery for the
world’s third-largest economy.
The central bank’s April Tankan report — a quarterly survey of about
10,000 companies — showed a reading of 12 among major manufacturers, a steep
fall from 19 in the previous quarter.
Economists say a slowdown in the Chinese economy was partly to blame, with
worries that a rise in crude oil prices could eat into profits also weighing
on business confidence.
The index for non-manufacturers slipped to 21 from 24 in the previous
quarter.
The Tankan report, the broadest indicator of how Japan Inc. is faring,
marks the difference between the percentage of firms that are upbeat and
those that see conditions as unfavourable.
Japan’s economy grew a modest 0.5 percent quarter-on-quarter at the end of
last year.
However, the cabinet office has recently revised down its judgement on the
economy as a separate business confidence index declined in January for the
third straight month.
Analysts have also warned that US-led trade wars could be a major risk
factor for the Japanese economy still struggling to win a long battle against
deflation.
BSS/AFP/HR/0935