Japan manufacturers’ sentiment rises in August after US trade deal, but tariffs cloud outlook: Reuters poll

Written by Macco Yamazaki

A Tankan Reuters poll showed that Tokyo (Reuters) -Japanese manufacturers are more confident in the working conditions in August after a trade agreement between Tokyo and Washington, but it has been cautious about expectations due to the effects of the possible US tariff.

The monthly survey, which tracks the Tankan Conservative Bank, has shown the morale of the manufacturers to the plus 9 in August 7 in July, which represents a second consecutive month of improvement.

But the index is expected to decrease to 4 over the next three months, indicating that manufacturers are still protected on how American definitions affect their business.

The poll, which was conducted between July 30 and August 8, is 497 major non -financial companies, with a response to 241, provided that their identity is not disclosed.

Last month, Japan got a business deal with the United States, which reduces definitions on cars and other commodities to 15 % against a Japanese investment package of $ 550 billion, which will come in the form of ownership rights, loans and guarantee.

Among the manufacturers, the feelings index of the transport machinery sector, which includes the vital auto industry in Japan, rose to 25 August of 9 in July. However, it is expected that you will review to the plus 9 in November.

“The look of business remains unconfirmed because the US tariff policies force the entire automotive industry to fix their production plans,” the poll director wrote.

Another manager from the sector indicated that Japanese auto sales in China, as well as American definitions, as a source of concern.

The food industry witnessed a sharp decrease among all sectors, as the feelings index fell to minus 25 of zero, with some managers who refer to the continuous storms in the costs of components and materials.

For non -manufacturers, the commercial morale index fell to 24 on August of Plus 30 in July, its first decrease in five months. Companies expect a simple recovery to 25 in the next three months.

Real estate and construction companies, as well as retail companies, have reported declines in their indexes, although they remained in a positive area, indicating that optimists exceed the number of pessimists.

Some managers of retail companies were martyred to a decrease in the store’s visitors, while the director of the services company said that the heat waves affect the business.

(Participated in the reports of Mackeco Yamazaki; edited by Himani Sarkar)