*
Manufacturers' sentiment index unchanged in April from
March
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Service sector index +24 in April vs +21 in March
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Manufacturers' mood seen improving in next 3 months
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Reuters poll suggests service sector-led econ recovery
-analyst
(Adds analyst quote, company comment, detail)
By Tetsushi Kajimoto
TOKYO, April 19 (Reuters) - Big Japanese manufacturers
remained pessimistic in April for a fourth straight month as
jitters over Western banks added to slowing global growth, the
monthly Reuters Tankan survey showed on Wednesday, dimming
prospects for an export-led recovery.
However, it also showed the service sector mood improved for
a second straight month to a four-month high, signalling a
post-COVID economic recovery led by inbound tourism, which has
boosted restaurants and retailers.
"The survey confirmed the economy is on track for a
post-coronavirus recovery backed by service-sector firms,
although manufacturers are affected by a slowdown in global
demand," said Yoshimasa Maruyama, chief economist at SMBC Nikko
Securities.
The Reuters Tankan, which closely tracks the Bank of Japan's
(BOA) quarterly key tankan survey, canvassed 493 big
non-financial firms. About 240 firms responded during the April
5-14 period on condition of anonymity.
The survey results chimed with the BOJ tankan published on
April 3, which showed the big manufacturers sentiment index
worsened for a fifth consecutive quarter, hurt by elevated costs
of raw and other materials, energy and mixed feed, while the
service sector mood slightly improved after easing COVID curbs.
"Our clients are taking a wait-to-see stance due to anxiety
over the financial sector in the United States and Europe and a
delay in recovery in Chinese demand," a manager of a paper/pulp
company wrote in the survey.
On the other hand, service-sector firms sounded more upbeat
on the current business situation.
"Private consumption has come back to life as a reaction
against a pullback in demand caused by the coronavirus
pandemic," a manager at a retailer wrote in the survey.
The sentiment index for big manufacturers in the Reuters
Tankan survey stood at minus 3, unchanged from the previous
month and posting a fourth straight month of negative readings,
according to the survey.
It was the longest such sequence since an 18-month run of
negative sentiment through the start of 2021 in the wake of the
COVID outbreak.
The Reuters Tankan manufacturers index is expected to
rebound to plus 7 over the next three months.
The large service-sector firms' index edged up to plus 24 in
April from plus 21 seen in the previous month, hitting the
highest level since December. The index is expected to fall to
plus 19 in July.
BOJ Governor Kazuo Ueda has vowed to continue monetary
easing for the time being to support a fragile economy. The
tankan surveys will be among indicators the central bank closely
scrutinises to gauge corporate strength when Ueda chairs his
debut policy-setting meeting on April 27-28.
The Reuters Tankan indexes are calculated by subtracting the
percentage of pessimistic respondents from optimistic ones. A
negative figure means pessimists outnumber optimists.
($1 = 134.1600 yen)
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Breakdown of the survey results ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Tetsushi Kajimoto
Editing by Gareth Jones and Sam Holmes)
