JPY: Grass roots sentiment deteriorates – Nomura

By FXStreet Research Team at Nomura, suggests that the turmoil on financial markets since beginning of year may have had an impact on the Japanese economy.

Key Quotes

“Current conditions DI down, share prices and weak Chinese economy weigh on sentiment: The current conditions DI in the January 2016 Economy Watchers Survey was down 2.1 m-m at 46.6, following a rise in the DI for December 2015. The breakdown shows a fall of 0.3 to 54.8 for the employment-related DI and particularly large deteriorations for the household activity-related DI, down 2.1 at 45.6, and the corporate activity-related DI, down 3.0 at 45.9. Some respondents pointed to a decline in willingness to spend among consumers because of weaker share prices, and sluggish exports because of the lackluster Chinese economy.

Some positive comments on future conditions, but seasonally adjusted future conditions DI falls: Meanwhile, the future conditions DI, an indicator of how respondents view the economic outlook over the next two to three months, was up 1.3 m-m at 49.5. The employment-related DI deteriorated, down 0.8 at 54.4, but the household activity-related DI and the corporate activity-related DI both improved, up 1.6 at 48.8 and 1.0 at 49.2, respectively. Comments by respondents in the survey indicated that …read more

Source:: FX Street