Japan BoJ Tankan Large Manufacturers Index rose to -27 in Q3, up from , -34, but missed expectation of -23. Large Manufacturing Outlook rose to -17, up from -27, matched expectations. Large Non-Manufacturing Index rose to -12, up from -17, missed expectation of -9. Non-manufacturing outlook rose to -11, up from -14, missed expectation of -9. All industry capex rose 1.4%, slightly above expectation of 1.3%.
The improvement in large manufacturers’ mood was welcomed considering that the index just hit the lowest level in 11 years in Q2. But the bounce is disappointing with pandemic uncertainty persisting. There are increasing calls for additional fiscal stimulus from new Prime Minister Yoshihide Suga. Ruling coalition party leader Natsuo Yamaguchi indicated earlier that the government is considering addition large-scale spending package.
