Japan Tankan Large Manufacturing Index dropped from 8 to 7 in Q4, above expectation of 6. Sentiment has been deteriorating for the fourth straight quarter, and hit the lowest level since Q1 2021. Large Manufacturing Outlook dropped from 9 to 6, matched expectations.
On the other hand, Large Non-Manufacturing Index rose from 14 to 19, above expectation of 17. That’s the highest level since Q4 2019. Large Non-Manufacturing Outlook was unchanged at 11, below expectation of 16.
Large all industry capex dropped from 21.5% to 19.2%, above expectation of 18.4%.
Regarding inflation, 1-year ahead general prices expectations for all industries rose from 2.6% to 2.7%. 3-year ahead expectations rose from 2.1% to 2.2%. 5-year ahead expectations was unchanged at 2.0%.
