Japan Big Makers' Confidence Up In September On Tariff Deal

(MENAFN- Gulf Times) Business confidence among major Japanese manufacturers improved for the second consecutive quarter after a deal to lower US tariffs, but the outlook was clouded by caution over the impact of the levies, the Bank of Japan's Tankan survey showed Wednesday.

The sentiment index measuring confidence among companies such as those in the auto and electronics sectors rose to 14 in September from 13 three months earlier, falling slightly short of the average market forecast of 15.

The index for large nonmanufacturers, including the service sector, was unchanged from the previous survey in June at 34, as they benefited from passing higher costs on to customers but were pressured by rising prices that prompted consumers to tighten their belts.

Looking ahead, however, big manufacturers' sentiment is projected to worsen to 12, and that of large nonmanufacturers is expected to fall to 28, according to the central bank's quarterly survey.

The latest Tankan was the first released since US President Donald Trump eased duties on Japanese goods after a bilateral trade deal in July, with the auto tariff reduced to 15 percent from 27.5 percent in mid-September.

Among manufacturers, sentiment in the motor vehicle sector climbed to 10 from 8 in June, but is forecast to return to 8.

Confidence among shipbuilding and heavy machinery makers jumped to 36 from 27, as they were able to pass rising costs on to customers through higher prices, the Bank of Japan (BOJ) said.

Business confidence manufacturers caution US tariffs

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