Japan manufacturers' mood is at lowest since 2013
In August, Japanese manufacturers' mood slumped to its lowest value since 2013 when Japan’s major financial institution embarked on aggressive monetary easing, as a Reuters poll revealed, reflecting the pain provoked by a soaring yen and highlighting the huge task facing policymakers to generate soar.
The Reuters Tankan, tracking the BOJ’s quarterly tankan poll, found out that the service sector's mood ascended for the first time for five months. That’s a sign of fragility rather than strength in private consumption, constituting approximately 60% of the national economy.
The monthly August 1-16 survey of 533 big as well as mid-sized firms, of which 275 responded, was conducted as early this month, Prime Minister Shinzo Abe disclosed new economic stimulus, which appeared to have modest impact on Japanese business morale.
The poll comes on the heels of data, showing that the national economy stalled during the second quarter as poor exports along with a strong yen curbed capital expenditure.