Japan’s Economic Woes Deepen as Manufacturers’ Mood Hits Three-Year Low

Japanese manufacturers’ mood soured in August to its lowest since 2013 when the central bank embarked on aggressive monetary easing, a Reuters poll showed on Friday, highlighting the weakness in an economy facing declining exports and sluggish consumer spending.

The Reuters Tankan, which tracks the Bank of Japan’s quarterly tankan, came on top of recent data showing exports in July tumbled the most since the last global financial crisis, and that economic growth stalled in April-June.

It underscores the challenge facing Prime Minister Shinzo Abe to boost growth as his recipe of bold monetary stimulus, fiscal spending and structural reforms – dubbed “Abenomics” – has struggled to pull the economy out of deflation and low growth.

Reuters

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.