JPY: March Tankan survey business conditions likely to take a dip – Nomura

By FXStreet Masaki Kuwahara, Research Analyst at Nomura, expects the current business conditions DI for large manufacturers to come in at 10, down 2pt from the December survey, and forecast the same DI for large nonmanufacturers will come in at 25, unchanged from December.

Key Quotes

“We made reference to the Reuters Tankan and the QUICK Tankan. The manufacturing sector business conditions DI for March was down 3pt from December in the Reuters Tankan and down 12pt in the QUICK Tankan. We see key factors as weakness in exports and industrial production. For the nonmanufacturing sector, the DI in the Reuters Tankan was up 6pt from December but the DI in the QUICK Tankan was down 3pt, giving a mixed picture. With domestic demand comparatively firm, we forecast the nonmanufacturing sector DI in the BOJ Tankan to be unchanged from December.

For the future conditions DIs, we forecast the figure for large manufacturers to be 1pt lower than the current conditions DI, and that for nonmanufacturers to be 2pt lower. For nonmanufacturers, the future conditions DIs in the Reuters and QUICK Tankan were worse than the March current conditions DIs. For manufacturers, both surveys show a 1pt rise from the March current conditions DI, but …read more

Source:: FX Street