Economist: Japan business mood dims on Trump tariffsーNHK WORLD-JAPAN NEWS
[Music] let’s look at the topics we’ll be tracking in the week ahead on Monday China will announce its purchasing managers index measuring manufacturing and services activity for June in May manufacturing activity fell below the boomer line for a second month and on Tuesday the Bank of Japan will release its closely watched quarterly survey of business sentiment the central bank’s tankan will be the first concrete data expected to show how US tariffs are affecting business confidence and activity in Japan noshi of the NLI Research Institute predicts the survey will reveal that sentiment among major manufacturers deteriorated for a second straight quarter i expect major manufacturer sentiment to worsen by about four points from the previous poll by industry automobiles and steel on which high levies are already imposed will likely see a significant deterioration sure enough there are signs that Japan’s auto industry the backbone of its economy is being hurt by US tariffs export prices for North America bound passenger cars plunged almost 19% in May from a year earlier in contrast prices for exports to other regions remained mostly unchanged uo notes that the export price declines show Trump’s tariffs are likely to weaken profits for Japan’s automakers the sharp drop in export prices suggests companies are covering a significant portion of the tariffs as a result the profit of exporting companies appears to be worsening considerably automakers may be taking a wait andsee attitude right now while carefully watching tariff developments and the moves of other auto firms if the tariffs issue drags on car makers may have no choice but to start to pass tariffs on to local prices u adds another gauge in the Tonkan could offer important clues to the extent of economic risks Japan faces because of US trade measures and that’s corporate capital investment the Trump tariffs have raised concerns about profit squeeze and uncertainty about the future gradually forcing businesses to postpone investment looking at Japan’s GDP growth rate in the last fiscal year capital investment made substantial contributions if companies present restrained plans for capital investment it would be difficult to find a driving force for the Japanese economy there’s no sign Japan US trade talks will produce a deal the longer the discussions drag on the greater the potential impact on the economy with consumer sentiment already dampened by inflationary pressures tariffs could double the blow i’m Yanakamarie and that wraps up this edition of Bispick
The Bank of Japan will release its Tankan survey of business sentiment on July 1st. The results will provide important clues on how US tariffs are affecting business confidence and activity in Japan. #japan #business #usa #trumptariffs
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