What was the January confidence level for Japanese manufacturers?

Japanese manufacturers' confidence index fell to plus 7 in January, a six-month low.

Which Japanese industries are most affected by the demand slump?

The oil, steel, and ceramics sectors are particularly disheartened by lackluster demand.

How are Chinese tourists affecting Japan's service sector?

Fewer Chinese tourists have impacted Japan's service sector, with some retailers seeing tourist sales tumble by 40%.

Home / Business and Economy / Japan Confidence Dips: Slump in Demand Hits Key Industries

Japan Confidence Dips: Slump in Demand Hits Key Industries

14 Jan

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Summary

Manufacturers' confidence index fell to a six-month low in January.
Oil, steel, and ceramics sectors showed significant drops in sentiment.
Service sector sentiment declined, impacted by fewer Chinese tourists.

Japan Confidence Dips: Slump in Demand Hits Key Industries

Japanese manufacturers' confidence has declined to its lowest point in six months, with the Reuters Tankan poll showing the index at plus 7 in January, down from plus 10 in December. This dip reflects growing concerns over sluggish demand in major economies. The materials industries, specifically oil, steel, and ceramics, experienced the most significant drops in sentiment, signaling a challenging start to the year.

Smaller declines were observed in the auto and electronic machinery sectors, though some managers cited shrinking exports due to tariffs. The non-manufacturing sector also saw a marginal decrease in confidence, with wholesalers and retailers reporting lower sentiment. The service industry noted the impact of reduced Chinese tourist numbers, leading to a substantial drop in sales for some businesses like department stores.