In October, the Japan Tankan manufacturing index compiled by Reuters – which anticipates the publication of the quarterly Tankan index compiled by the Bank of Japan and which measures the confidence of Japanese manufacturing companies – worsened from 18 points in September to 16, minimum since April, ie the last six months.
The index that measures the sentiment of companies active in the services sector, on the other hand, improved from -2 points to -1 point, remaining however in negative territory.
The report showed that, although the business of companies has not yet returned to the levels prior to the Covid-19 pandemic, the worst of the pandemic phase is considered over and there is talk of a trend in the recovery phase.
Still, commodity prices are flying, even if the rise has not hit selling prices, as the deflationary environment remains strong.
Demand for semiconductor products is solid but there are production cuts launched by auto companies and companies that make machinery for factories.