clearn.png
Wednesday June 23rd, 2021 12:58AM

Bank of Japan 'tankan' survey upbeat over economic recovery

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — A closely watched economic survey by the Bank of Japan shows growing optimism as the world’s third-largest economy grapples with the damage from the coronavirus pandemic.

The quarterly “tankan” survey’s headline index for big manufacturers’ sentiment stood at plus 5 in March, a considerable improvement over the minus 10 marked in December, and more positive than the forecast at plus 4.

The survey reported Thursday highlights a steady recovery in sentiment over the last three quarters, to levels before COVID-19 began in late 2019.

The tankan measures corporate sentiment by subtracting the number of companies saying business conditions are negative from those responding they are positive.

Sentiment among large nonmanufacturers improved by four points to minus 1, underlying how that sector is bouncing back far more slowly than big manufacturers.

Naoya Oshikubo, senior economist at SuMi TRUST, or Sumitomo Mitsui Trust Asset Management, said he believes the recovery is slower in the service sector because of government-backed “states of emergency” issued periodically, with the latest ending in March.

Exports have led the recovery, while the food, travel and accommodation sectors have stalled. But the overall impact will be gentler than last years’ because the latest emergency only applied to some parts of Japan, Oshikubo said in a report this week.

“And, in general, people have become accustomed to COVID-19 measures,” he said.

The coronavirus sent sentiment in Japan Inc. plunging last year to levels last seen when the economy was battered by the financial crisis more than a decade ago.

Although trade and some economic activity have been recovering, income from tourism, a major driver for growth in recent years, is still squelched because of pandemic-related restrictions.

Some 9,100 people have died from COVID-19 in Japan. The vaccine rollout has barely begun, with less than 1% of the population inoculated.

Junichi Makino, chief economist at SMBC Nikko Securities, noted the vaccine is key to ensuring a recovery in the nonmanufacturing sector, while profitability at major companies was likely to keep improving.

“Consumer spending is critical for boosting domestic demand, and that's closely related to containing the coronavirus and progress of the vaccine rollout,” he said in comments on the tankan.

With cases rising recently in a “fourth wave,” worries are growing about the Tokyo Olympics, set to open in July, with tens of thousands of people, including athletes, business and government officials and media, entering the country from abroad.

___

Yuri Kageyama on Twitter https://twitter.com/yurikageyama

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Biden to hold first Cabinet meeting amid infrastructure push
Joe Biden's first Cabinet meeting of his presidency will be used to promote his new infrastructure plan
12:12AM ( 3 minutes ago )
It's cherry blossom season, but DC isn't ready to open up
Officials in the nation’s capital are watching the crowds as cherry blossom season begins in earnest
12:10AM ( 6 minutes ago )
Biden plan would spend $16B to clean up old mines, oil wells
President Joe Biden’s plan to transform America’s infrastructure includes $16 billion to plug old oil and gas wells and clean up abandoned mines
12:08AM ( 7 minutes ago )
Associated Press (AP)
Bank of Japan 'tankan' survey upbeat over economic recovery
A closely watched economic survey by the Bank of Japan shows growing optimism over the outlook for the world's third-largest economy
11:06PM ( 1 hour ago )
Biden announces huge infrastructure plan to 'win the future'
President Joe Biden has outlined a huge $2.3 trillion plan to reengineer the nation’s infrastructure over the next eight years
10:59PM ( 1 hour ago )
The Latest: 6 more COVID cases found in local China outbreak
Health officials in China say six more people have become ill with COVID-19 in a southwestern Chinese city on the border with Myanmar
10:47PM ( 1 hour ago )
AP Business
Yellen says regulatory panel to look at 2020 market turmoil
Treasury Secretary Janet Yellen says last year’s coronavirus-triggered market turmoil exposed vulnerable areas in the U.S. economy that need to be addressed by the nation’s top-level financial supervisory group
6:33PM ( 5 hours ago )
S&P 500 climbs, closing out its 4th straight quarterly gain
Stocks closed mostly higher on Wall Street, clinching the 4th straight quarterly gain for the S&P 500
5:02PM ( 7 hours ago )
Wall Street ticks higher, led by tech and smaller stocks
U.S. stock indexes are mostly rising in afternoon trading Wednesday as investors wait to hear the details about Washington’s next mammoth push for the economy
3:49PM ( 8 hours ago )
AP Business - Economy
Big Tech leads gains as Wall Street opens broadly higher
Stocks are opening higher on Wall Street led by gains in Big Tech companies
9:42AM ( 14 hours ago )
Global shares fall despite strong China factory data
Global shares are mostly lower despite data pointing to a strong economic recovery in China, as worries linger about the pandemic
4:50AM ( 19 hours ago )
Asia shares fall on virus worries, despite strong China data
Asian shares are mostly lower despite data pointing to a strong economic recovery in China, as worries linger about the coronavirus pandemic
3:12AM ( 21 hours ago )
AP Business - Financial Markets
The Latest: Quebec locking down 3 cities over virus surge
The Quebec government is putting three cities in the Canadian province into lockdown beginning Thursday following a sharp rise in coronavirus infections
6:13PM ( 6 hours ago )
The Latest: Amazon announces employees to return to office
Amazon plans to have its employees return to the office by fall as the tech giant transitions away from the remote work it implemented for many workers due to the coronavirus pandemic
5:03PM ( 7 hours ago )
France to close schools, ban domestic travel as virus surges
French President Emmanuel Macron has announced a three-week nationwide school closure and a month-long domestic travel ban as the rapid spread of the virus ramped up pressure on hospitals
3:57PM ( 8 hours ago )
AP Business - Industries
The Latest: Sri Lanka gets donated vaccine doses from China
Sri Lanka received 600,000 doses of the Sinopharm vaccine from China as a donation
6:29AM ( 17 hours ago )
The Latest: Virus surge shows no sign of abating in Hungary
A devastating surge in COVID-19 deaths in Hungary is showing no sign of abating as daily new cases hit a record 302
4:42AM ( 19 hours ago )
The Latest: Japan wants further probe into COVID-19 origins
Japan is calling for further investigation into the origins of COVID-19, saying the WHO report was based on work that faced delays and lacked access to essential virus samples
2:44AM ( 21 hours ago )
AP Business - Health Care
AP source: Lindor, Mets agree to $341 million, 10-year deal
Francisco Lindor and the New York Mets have agreed to a $341 million, 10-year deal
11:46PM ( 30 minutes ago )
Biden says Rangers making mistake by allowing full capacity
President Joe Biden tells ESPN it was a mistake for the Texas Rangers to allow full capacity at their ballpark for their first game
11:38PM ( 38 minutes ago )
Osaka's 23-match win streak ends against Sakkari in Miami
No. 2-ranked Naomi Osaka’s 23-match winning streak ended when she lost to Maria Sakkari of Greece in the quarterfinals of the Miami Open, 6-0, 6-4
11:20PM ( 56 minutes ago )
7 convicted in Hong Kong over 2019 pro-democracy protests
Seven pro-democracy advocates have been convicted for organizing and participating in an unlawful assembly during massive anti-government protests in 2019, as Hong Kong continues its crackdown on dissent
11:13PM ( 1 hour ago )
Niger government confirms military coup attempt thwarted
Niger's government says that an attempted military coup was thwarted overnight at the presidential palace by security forces
11:10PM ( 1 hour ago )