Corporate Sentiment Remains Firm
According to the Bank of Japan’s (BOJ) June Tankan survey, the Diffusion Index (DI) for business conditions showed a generally resilient trend. Despite the tariffs imposed by the United States, the manufacturing sector remained solid , while the non-manufacturing sector reached its highest level since the Japan’s bubble era (Figure 1). Against this backdrop, two key developments in July were particularly important for assessing Japan’s economic outlook: the ruling party’s defeat in the Upper House election, resulting in a minority government in both chambers, and the agreement reached between Japan and the U.S. regarding tariff negotiations.
Full article by Yuko Iizuka, Economist Asset Management One Co., Ltd. pdf HERE