In the Tankan survey, the Short-Term Economic Survey of Enterprises conducted by the Bank of Japan, the business conditions index for large manufacturers improved for the sixth consecutive quarter, while the index for non-manufacturers deteriorated for the first time in five quarters. The outlook for 3 months ahead is expected to worsen across both manufacturing and non-manufacturing, raising the possibility that the business conditions index, which had improved to its highest level since March 2018, will retreat.
In the Tankan survey published by the Bank of Japan every 3 months, the business conditions index for large manufacturers was plus 24, an improvement of 2 points from the previous survey in June. The sixth consecutive quarterly improvement brought the index to its highest level since March 2018.
By contrast, the index for non-manufacturers was plus 35, down 2 points from the previous survey in June. This was the first deterioration in the non-manufacturing index in five quarters.
The outlook for 3 months ahead deteriorated across the board, including among large manufacturers and non-manufacturers as well as medium-sized and small companies.
The results suggest that uncertainty about the outlook may be spreading across the Tankan survey as a whole.