18 Sep, 2020 06:15 am

BOJ September tankan to show firms' pessimism eased, outlook remain subdued

BOJ September tankan to show firms' pessimism eased, outlook remain subdued: Reuters poll

25% TOKYO (Reuters) - Japan's next quarterly survey will likely show its big manufacturers were less pessimistic than they were in the June quarter, when business sentiment struck an 11-year low following a nationwide lockdown due to the coronavirus outbreak.Fourteen economists polled by Reuters forecast the Bank of Japan's quarterly tankan business sentiment survey would show the headline index for big manufacturers' confidence at minus 23 in September, improving from minus 34 in June as sentiment began recovering after a nationwide lockdown was eased.The Reuters poll showed sentiment among both big manufacturers and non-manufacturers over the outlook was likely to remain subdued.Big manufacturers' business confidence is expected to recover somewhat to minus 17 in the coming quarter, and non-manufacturers' sentiment is forecast to remain at minus 9, the poll found.

"Demand recovery after social and economic activities restarted in Japan and overseas helped business sentiment to improve in broad industries," said Akane Yamaguchi, economist at Daiwa Institute of Research."The pace of recovery in business sentiment is expected to be limited as coronavirus prevention steps remain in place and concerns over a resurgence in the cases continue to be strong," Yamaguchi said.

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