BOJ Tankan: Business Sentiment Turns Negative

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The coronavirus scare has sent shudders through the world of big business in Japan, as it undermines a broad range of economic activities.

The Bank of Japan's latest Tankan survey shows sentiment at large manufacturers has turned negative for the first time in 7 years.

The index stands at minus 8. That's 8 points down from the previous quarter.

A negative reading means most companies are feeling pessimistic.
The index deteriorated for all sectors, especially shipbuilding, heavy machinery, and motor vehicles.

Sentiment was also down at big non-manufacturers. But it managed to stay in positive territory. It went from plus 20 to plus 8.

Tourist numbers have fallen off a cliff. The index for accommodations, eating and drinking services plunged to minus 59. It was plus 11 last time.

The BOJ surveyed around 10,000 firms to come up with the index. It shows the difference between the percentage of firms saying business is good, and those saying it's bad.

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