Reuters Tankan report has manufacturing sentiment at 8 in May, down from 9 in April

Reuters Tankan

more to come

• Japan manufacturers index +8 in May vs +9 in April

• Japan non-manufacturers index +30 in May, unchanged from April

• Japan manufacturers index seen at +7 in August, non-manufacturers at +28

• Tariff uncertainty under Trump’s trade policy is dampening business optimism, particularly in manufacturing.

• Rising costs, delayed capital spending, and concerns over China’s economy were cited as key risks.

• Transport sector saw a temporary lift, with increased vehicle production, though outlook remains cautious.

• The economy contracted in Q1, and the sentiment dip underscores risks to Japan’s recovery momentum.

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Reuters Tankan is a monthly survey that seeks to track the Bank of Japan’s tankan quarterly survey

• respondents spoke on the condition of anonymity
• Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A positive reading means optimists outnumber pessimists.

This article was written by Eamonn Sheridan at www.forexlive.com.