BOJ Tankan Likely to Show Slight Fall in Biz Sentiment

Tokyo, June 24 (Jiji Press)--An upcoming Bank of Japan "tankan" quarterly survey report is seen showing a slight deterioration in business sentiment among both major Japanese manufacturers and nonmanufacturers, according to estimates by 15 private think tanks released by Tuesday. 
 

Economists view that the worsening conditions for exports resulting from U.S. President Donald Trump's high tariff policy will negatively impact manufacturers' sentiment.
 

The Japanese central bank's June survey, due out next Tuesday, will be the first such report to be released after the implementation of the Trump administration's additional tariff on automobile imports and so-called reciprocal tariffs.
 

The headline diffusion index for current sentiment among large manufacturers is projected at plus 10 for the June report, down 2 points from the previous March survey.
 

The DI is calculated by subtracting the percentage of companies reporting bad business conditions from that of those seeing good conditions.
 

The United States introduced an additional tariff on automobile imports and a uniform 10 pct reciprocal tariff on imports from almost all its trading partners in April, and doubled tariffs on imported steel and aluminum to 50 pct in June.
 

Sentiments of steel, nonferrous metals and automobile makers in Japan will greatly worsen, Mitsubishi UFJ Research and Consulting Co. said.
 

The index for large nonmanufacturers' current sentiment is forecast at plus 34, down 1 point from the previous survey.
Demand from inbound tourists is expected to remain strong.
 

However, NLI Research Institute noted that sluggish consumer confidence due to rising prices of rice and other commodities put downward pressure on business confidence among nonmanufacturers.
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