Tankan signals modest Japanese economic recovery
Japanese business sentiment improved in Q2, showed the latest Tankan survey. This suggests the world’s third largest economy is on track for a modest recovery.
(Video Transcript)
Bank of Japan Tankan large manufacturers
In Japan, business sentiment improved in the second quarter. The Bank of Japan Tankan large manufacturers index rose 5 points in June, bouncing back from the two-year low of one recorded three months ago. Capital expenditure, well, it's looking like it's going up 13.4% more than expected.
This is the plan, of course, and a significant improvement on the 3.2% recorded in the first quarter. This latest reading confirms the opinion of many economists that the world's third-largest economy is on track for a moderate recovery. Details of this survey show that while input prices have declined, output prices continue to rise, meaning that companies are able to pass on costs. Companies expect inflation to hit 2.6% a year from now, down from the 2.8% projection made in March but still above the Bank of Japan's target
USD/JPY
Let's have a look at the USD/JPY As you can see here, it is moving higher towards the 14,600 mark at the end of last week. This cross briefly rose above 145, or rather, 14,500, on this chart. It was at that level that, in September 2022, the Japanese government intervened to support the JPY.
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