Japan’s Business Mood Worsens as Costs Cloud Outlook
TOKYO—Japanese manufacturers’ business mood worsened in the three months to September and corporate inflation expectations hit a record high, a central bank survey showed, as stubbornly high material costs clouded the outlook for the fragile economy.
Corporate capital expenditure plans for the current fiscal year stayed strong, the Bank of Japan’s “tankan” survey showed, thanks in part to the boost to exporters from the weak yen.
But fears of a global economic slowdown cloud the outlook for the export-reliant economy, which is just emerging from the coronavirus pandemic.
“Big manufacturers’ sentiment was surprisingly weak as slowing global growth took a toll on the materials sector through declines in commodity prices,” said Takeshi Minami, chief economist at Norinchukin Research Institute….