Confidence in Japanese manufacturers falls to 11-month low

The results of the Tankan survey showed that the mood of Japanese manufacturers worsened in February. The degree of their optimism about the national economic situation decreased in the next three months. The index, which assesses the confidence of manufacturers, fell this month by 11 points compared with the January value of the indicator. It amounted to 6 points, which is the minimum level for 11 months. In Japan’s service sector, the mood is somewhat better. However, the confidence index dropped 5 points to 3 points. The decrease in the indicator was observed in this sector of the Japanese economy for the first time in the last 5 months. Many survey participants complained about the rise in raw materials prices. Rising commodity prices have already begun to harm the companies’ activities operating at the bottom of existing supply chains. These include enterprises that produce consumer goods, as well as companies engaged in the provision of services.

Source: xCritical.com