The Strategist

Japan's Tankan economic sentiment index declines for the first time in a year

04/01/2024 - 13:28

According to the Bank of Japan, the Tankan index, which measures the level of confidence that big process sector businesses have in Japan's economy, dropped from 13 points in October-December of last year to 11 points in the first quarter.

shankar s.
shankar s.
The indicator has declined for the first time in a year. Trading Economics reports that analysts expected a larger decline to 10 points on average.

The index's positive value indicates that a greater proportion of respondents felt that the business environment was favorable.

The car industry (down 13 points from 28 points in the fourth quarter) and the non-ferrous metals industry (down 6 points from 15 points) experienced the biggest declines in sentiment earlier this year. In the meantime, industry optimism increased in the food processing sector (to 24 points from 18 points) and the petroleum refining sector (to 9 points from zero).

From October to December, the index measuring the representatives of large non-manufacturing enterprises' current level of confidence increased from 32 to 34 points. Experts anticipated a rise to 33 points.


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