July 1, 2020 / 12:06 AM / 2 days ago

Japan business mood worsens to 11-year low on virus woes - BOJ tankan

TOKYO, July 1 (Reuters) - Japanese manufacturers’ pessimism deepened to a level not seen since 2009 in the three months to June, the central bank’s “tankan” survey showed, as the coronavirus pandemic took a toll on business and consumer activity.

The headline index for big manufacturers’ sentiment worsened to minus 34 in June, versus minus 8 in March, the closely watched survey showed on Wednesday.

The index compared with economists’ median estimate of minus 31 in a Reuters poll. It marked the sixth straight quarter of declines and hit its lowest level since June 2009.

The reading is seen improving to minus 27 over the next three months, the survey showed.

The survey also showed big firms plan to raise their capital expenditure by 3.2% in the financial year to March 2021, versus economists’ median estimate of a 2.1% increase.

The tankan’s sentiment indexes are derived by subtracting the number of respondents who say conditions are poor from those who say they are good. A negative reading means pessimists outnumber optimists.

For the POLL story on the survey:

Survey results on the BOJ's website: here (Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Chris Gallagher)

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