Japan Tankan large manufacturing index rose to 14 in Q2, up from 5, missed expectation of 15. That’s the best level since 2018, and the fourth straight quarter of improvement. Large manufacturing output rose to 13, up from 4, below expectation of 18. Non-manufacturing index rose to 1, up from -1, below expectation of 3. Non-manufacturing outlook rose to 3, up from -1, missed expectation of 8. Large all industry capex rose 9.6%, above expectation of 7.2%.
“Exports and output continue to improve, which is helping sentiment improve for most manufacturing sectors. The auto sector, however, saw sentiment worsen due to shortages in semiconductor chips,” a BOJ official said at a briefing.
