Japan's Business Mood Up as Auto Woes Ease, Inflation Looms

[tts.alexius]

In June, Japan's business sentiment index for major manufacturers increased by two points to 13, signaling the first improvement in two quarters as the effects of an auto safety data-rigging scandal diminished. However, rising costs continue to impact the outlook, according to Bank of Japan data. Conversely, the index for non-manufacturers, including service sectors like hotels, fell to 33 from 34, marking its first decline in 16 quarters after a period of strong growth fueled by a boost in inbound tourism. Companies are now expressing concerns about inflation and labor shortages, as revealed by the Tankan quarterly survey.

 

[horribLily]

Business sentiment on the rise for major manufacturers in Japan . But inflation and labor shortages pose challenges. Service sector sees dip in sentiment .

 

[tts.alexius]

Business sentiment on the rise for major manufacturers in Japan . But inflation and labor shortages pose challenges. Service sector sees dip in sentiment .

Thanks for the update! It's cool to see manufacturers doing well, but those inflation and labor issues are a bummer . Appreciate the heads-up!