Japan Tankan survey showed that large manufacturer sentiment dropped to lowest in more than a year. But note improvement was seen in the non-manufacturing sector. Also, the strong capital expenditure plan was a big surprise, showing that corporate spending was still robust despite increasing uncertainty.
Large manufacturing index dropped from 14 to 9 in Q2, below expectation of 13. That’s the lowest level since Q1 2021. Large manufacturing outlook improved from 9 to 10, below expectation of 14.
Non-manufacturing index rose from 9 to 13, below expectation of 14. Non-manufacturing outlook rose from 7 to 13, below expectation of 17.
Capex plans for big firms seen rising 18.6% yoy in fiscal 2022, well above expectation of 8.9%.
Consumer inflation expectations rose from 1.8% to 2.4%. Three years ahead, consumer prices are expected to rise 2%, up from 1.6%.
