TOKYO- Japanese manufacturers’ business confidence fell to a seven-month low in November due to ongoing supply shortages, while sentiment in the services sector hit a three-month high on easing coronavirus curbs, the Reuters Tankan poll showed.
The mood among manufacturers deteriorated for the third month in November, but they became more optimistic about the outlook, according to the monthly poll, which tracks the Bank of Japan’s (BOJ) closely watched Tankan quarterly survey next due on Dec. 13.
The sentiment index among service-sector firms picked up slightly in November, while their three-month outlook also improved, as the government eased coronavirus restrictions from the end of September due to falling COVID-19 cases, the poll found.
The poll of 502 big and mid-sized companies conducted between Oct. 26 and Nov. 5, of which 254 responded, showed managers remained worried about supply issues and commodity inflation.
“Carmakers’ output cuts due to chip shortage and soaring steel prices kept our revenue and profits below expectations,” said a manager at a machinery company.
The Reuters Tankan sentiment index for manufacturers fell to 13 in November from 16 in October – matching its lowest since April – while the service index rose to a three-month high of 1 from minus 1. – Reuters
