1 Oct 2014
Mixed data point to slow recovery in Japan – Danske Bank
FXStreet (Edinburgh) - Senior Analyst Flemming Nielsen at Danske Bank assessed the last mixed Tankan results from the Japanese economy.
Key Quotes
“In Japan the Tankan business survey was a mixed bag”.
“On a positive note, current conditions for large manufacturers were better than expected and large manufacturers plan to increase their capital expenditures by 8.6% in the current fiscal year, suggesting they have not lost confidence in the economy”.
“However, business sentiment for the non-manufacturing industry was markedly weaker than expected”.
“Hence, it appears the consumption tax hike in April is hurting, while manufacturers benefit from a weak yen”.
“Overall Tankan still suggests a weak recovery in Japan”.
Key Quotes
“In Japan the Tankan business survey was a mixed bag”.
“On a positive note, current conditions for large manufacturers were better than expected and large manufacturers plan to increase their capital expenditures by 8.6% in the current fiscal year, suggesting they have not lost confidence in the economy”.
“However, business sentiment for the non-manufacturing industry was markedly weaker than expected”.
“Hence, it appears the consumption tax hike in April is hurting, while manufacturers benefit from a weak yen”.
“Overall Tankan still suggests a weak recovery in Japan”.