[ad_1]
The business climate among major Japanese automakers dropped unexpectedly for the third consecutive quarter in the three months to September, according to a close survey conducted by the Bank of Japan.
The Tankan index for major manufacturers fell 2 points to 19, compared with a median forecast forecasting a 1 point rise in economists polled by Reuters. Higher readings suggest more robust economic growth. The reading level of sentiment in all sectors and all businesses dropped by 1 point to 15.
The quarterly survey of more than 10,000 companies produced by the Bank of Japan is transformed into indices ranging from minus 100 to over 100 by subtracting companies reporting poor business conditions from those reporting good deals.
The major manufacturers predicted that the yen would end the 2018 fiscal year with an average exchange rate of ¥ 107.29 per dollar in the second half, compared to ¥ 107.26 in the previous quarter and despite a 2.7 per cent decline in the currency. since the end of June ¥ 113.79 in the middle of a growing trade war and disruption caused by natural disasters.
A reading of the manufacturing capacity of large manufacturing firms increased from minus 6 to minus 5, indicating a slight improvement in the ability of firms to meet demand.
A producer price index for manufacturers also rose from 5 to 7, a new high for Prime Minister Shinzo Abe – although the latest monthly reading on inflation showed that price growth remained well below for the 2% goal of the Bank of Japan.
Source link
