BOJ June Tankan Seen Showing Record Biz Sentiment Fall
Tokyo, June 20 (Jiji Press)--The Bank of Japan's upcoming "tankan" survey report is expected to show record or near-record deterioration in business sentiment among manufacturers and nonmanufacturers due to the coronavirus pandemic, think tanks say.
The June report, due out July 1, is expected to show the headline diffusion index for sentiment among large manufacturers at minus 31 on average, down 23 points from March, according to a recent Jiji Press survey of 14 private research institutes.
The projected drop is close to the fall of 34 points logged in March 2009 amid the global financial crisis that followed the collapse of U.S. investment bank Lehman Brothers in September 2008.
The DI represents the percentage of companies reporting that their business conditions are good minus that of those saying the opposite.
In March 2020, the DI stood at minus 8 for large manufacturers and plus 8 for large nonmanufacturers. The index for the large manufacturers deteriorated for the fifth consecutive quarter.
[Copyright The Jiji Press, Ltd.]