The Bank of Japan survey showed worsening business sentiment amid rising costs, a sharp drop in the yen and the COVID-19 pandemic.
Japanese manufacturers’ business sentiment deteriorated for the third consecutive quarter from July to September, as the world’s third-largest economy faced a downturn, according to a central bank survey. rising costs, a sharp drop in the yen and the restrictions of the pandemic.
The business outlook for major manufacturers fell to a plus of eight in September from a plus of nine in June, the Bank of Japan’s “tankan” survey showed on Monday.
The survey showed service-sector sentiment improved slightly from three months ago, although retailers were less optimistic due to rising costs of living due to higher commodity prices and a weaker yen.
The index measures business sentiment by subtracting the number of companies that think business conditions are negative from those that think business conditions are positive.
Japan’s economy is under strain as a sharp drop in the yen exacerbates cost-of-living pressures caused by Russia’s invasion of Ukraine.
The value of the yen is falling, last month hit a 24-year low against the US dollarhas increased the cost of importing food and energy, burdening households and retailers.
Asia’s second-largest economy, which has struggled with stagnant growth for decades, is also grappling with more than two and a half years. Pandemic-related border restrictions will be lifted from October 11.
Japan’s economy grew 3.5% year-on-year in the second quarter, but analysts expect it to slow in the third quarter due to slowing global demand and rising raw material costs for exports and consumption. SAP.
