Sentiment among Japan’s big manufacturers worsened in the fourth quarter, the Bank of Japan’s Tankan survey showed on Monday, underscoring pessimism about the Japanese economy.
The headline big manufacturers index slipped one point from the previous quarter to +12, below expectations for a reading of +13 in a Reuters poll. Looking ahead, the first-quarter outlook for big manufacturers came in at +9, below expectations for a reading of +14.
“The number is not surprising for this month, minus 1 point because of the sluggish consumption,” said Atsushi Nakajima, chairman of the Research Institute of Economy, Trade and Industry “The forecast… is quite surprising because consumption is improving, together with a weaker yen, higher stock prices and also additional quantitative easing from the Bank of Japan and lower oil prices,” he said.
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