TOKYO, June 17 (Hfrance.fr) - Business confidence levels of Japanese manufacturers and companies in the service sector were little changed in June compared to the previous month, highlighting the fragile and uneven state of the recovery of the coronavirus in the country, showed an investigation by Hfrance.fr.
While manufacturers' mood has remained positive thanks to strong foreign demand, it is expected to be slightly lower three months from this month, according to the Hfrance.fr Tankan survey, which tracks the quarterly Tankan narrow surveyely monitored by the Bank of Japan (BOJ).
The Hfrance.fr Tankan confidence index for manufacturers increased slightly to 22 from 21 in May, while the mood in the service sector was more austere. The service index was stable, down from 2 the previous month, according to the survey conducted June 3-14. (For a detailed table of results, click on)
The readings of the Hfrance.fr Tankan index are calculated by subtracting the percentage of respondents who say that conditions are bad from those who say they are good. A positive reading means that optimists outnumber pessimists.
Among manufacturers, favorable sentiment towards manufacturers of chemicals and ls outweighs conditions less favorable in sectors such as textiles and paper, according to the surveyof 481 large and medium-sized companies, in which 238 companies responded under cover of anonymity.
"We see a positive impact of increasing demand abroad and in industries related to electronic materials "said an official at a chemical manufacturer.
The poll comes a day before the BoJ is set to end a June 17-18 political meeting where it could expand its pandemic programs to support the country's economic recovery, which would help bolster the economy. 'idea that it will lag behind other central banks in reducing crisis policies.
The BOJ's own The next survey of "tankan " companies is scheduled for July 1, a few weeks before Tokyo welcomes the Olympic Games later in the month, duelingering concerns that the event could fuel a spike in COVID-19 infections.
Japan's economy should narrowly avoid fall into recession this quarter, but it is unlikely to experience the high growth rates of the United States, in large part due to prolonged coronavirus restrictions and Tokyo 's late vaccine rollout. en find out more
The Hfrance.fr Tankan survey also underlined the blow that companies were feeling from the health crisis, with an official from a wholesaler describing the recovery from the coronavirus hit as still "slow".
Another manager, in a real estate company, was also negative. "Demand in aviation continues to grow.aisser due to the impact of the coronavirus ", wrote the official in the investigation.
The confidence of the builders in the companies has been saw a notch lower at 21 in September, while that of companies in the service sector is expected to reach 10, according to the survey. Report by Daniel Leussink; Edited by Kim Coghill
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