Japanese Tankan Report Positive in Q4 But Challenges Ahead

Confidence at big Japanese manufacturers held steady in the three months to December but is seen worsening ahead, a closely watched central bank survey showed on Monday.

The headline index for big manufacturers’ sentiment stood at plus 12 in December, unchanged from three months ago, the Bank of Japan’s quarterly “tankan” survey showed. That compared with the median estimate of plus 11 in a Reuters poll of economists.

Big firms plan to raise capital spending by 10.8 percent in the fiscal year that ends in March, compared with their previous plan for a 10.9 percent increase and with economists’ median estimate of a 10.2 percent expansion.

The tankan’s sentiment indexes are derived by subtracting the number of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza