Japan's manufacturing confidence falls to 5 - month low in September

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Japan's manufacturing confidence falls to 5 - month low in September

TOKYO Reuters - Manufacturer confidence suffered a five-month low in September as the fallout from the latest wave of COVID -19 put fresh pressure on the world's third-largest economy, the Reuters Tankan poll showed.

Sentiment among manufacturers fell as export-reliant firms like carmakers suffered from a global chip shortage, according to the monthly poll. This follows the Bank of Japan's BOJ closely watched tankan quarterly survey due on Oct. 1.

The confidence among service sector companies increased, but it was seen improving again over the next three months, the poll showed.

The worse view on current conditions suggests Japan's economy may slow in the third quarter after official data last week showed https: www.reuters.org. com business Japan expanded Q 2 - GDSP-stronger - Business-selling - 2021 - 09 - 08 it in the three months and beat expectations an annualized 1.9%.

The poll of 503 small and mid-sized companies, 264 responded to the survey between 1 and 10 September 2017, showed companies are struggling with sluggish demand both at home and abroad as a slowdown in China and emerging markets clouds the outlook.

Production and sales activity can't be carried out due to stagnating parts supply, a manager at a machinery maker wrote in the poll.

The Coronavirus lockdown and semiconductor shortage in Southeast Asia are having a major impact. The Reuters Tankan sentiment index for manufacturers dropped to 18 from a higher than three years high of 33 in August, to get its lowest since April. The service index minus 2 from 5 the last month changed the poll to showed. com business japan-business - mood-improves - Q 2 - 2 - 12 - year-high - tankan - 2021 - 07 - 01 - big manufacturers' business confidence was expected to remain positive in the first quarter after hitting a two-and - half-year high in the second quarter.

In the Reuters Tankan, firms reported the deepening impact of a global chip shortage, as activities and broader demand continued to be hobbled by the health crisis with some reporting they were suffering from higher raw material prices.

The impact of rising raw material prices is starting to be felt, while the Chinese and U.S. economies are seeing a slowdown, a manager at a chemical maker wrote in the survey

The Reuters Tankan poll showed manufacturers' confidence in December was thought to be largely stable at 19 while the confidence of service sector firms was expected to rise to 7.

There are no reservations coming in for overnight stays and banquets because of the fifth wave of coronavirus, said a manager at a service sector firm in a sign of fragile private consumption which accounts for more than half of Japan's economy.

The Reuters Tankan index readings are calculated by subtracting the percentage of respondents who say conditions are good from those who say they are poor.