Japan’s major manufacturers remain cautious
about the economy’s trajectory, with business sentiment flat for the quarter
as concerns about the pandemic linger, a key survey showed Monday.
Among major non-manufacturers however, there was an improvement in
confidence about the world’s third largest economy, offering glimmers of
hope.
The Bank of Japan’s Tankan business survey — a quarterly poll of about
10,000 companies — showed a reading of plus 18 for major manufacturers,
unchanged from the previous quarter and slightly lower than market consensus
of plus 19.
Among large non-manufacturers meanwhile, confidence improved to plus nine
from plus two in the previous quarter, the sixth consecutive improvement.
The short-term business sentiment survey reports the difference between
the percentage of firms that are upbeat and those that see conditions as
unfavourable.
A positive figure means more companies see business conditions as
favourable than those that consider them unfavourable. It is considered to be
the broadest indicator of how Japan Inc. is faring.
The latest reading comes with concerns over the Omicron variant of the
coronavirus.
For medium-sized manufacturing firms, confidence was unchanged at plus
six, while sentiment for small companies improved to minus one from minus
three.
Japan has seen a smaller virus outbreak than many countries, with fewer
than 18,400 deaths despite avoiding harsh lockdowns.
Emergency virus measures that largely affected bars and restaurants as
well as limiting large events were in place in parts of the country for much
of the year, but were lifted finally in October.
To address concerns over the Omicron variant, Japan earlier this month
abruptly asked airlines to stop taking all new incoming flight reservations
for a month, but later softened the blanket ban to make it easier for
citizens to return.
Its vaccination programme, which began later than in many developed
countries and started slowly, has picked up speed however, with around 78
percent of the population now fully inoculated.
And the government this month started administering the third dose of
vaccine, initially targeting health workers.
The government has also pledged large stimulus measures in a bid to
support economic recovery and those hit by the pandemic downturn.
Source: Bangladesh Sangbad Sangstha (BSS)