Hamilton Crawford: Japan's Manufacturers Most Optimistic in a Decade as Economy Grows
Hamilton Crawford comments as Japanese manufacturer confidence increased to its uppermost level in more than 10 years this month.
Shanghai, China, August 28, 2017 (Newswire.com) - Hamilton Crawford: With manufacturers of industrial materials leading the way, Japan’s manufacturers’ confidence in August indicated growing economic recovery.
According to a quarterly poll run by a leading financial institution, confidence in Japan’s service sector decreased but did remain at a fairly high level which emphasizes the strength of the domestic demand that fueled strong growth in the previous quarter.
It was anticipate that business confidence would decrease over the last quarter, pointing to a withdrawal from the sizeable yearly 4 percent growth seen in the second quarter. This growth was largely driven by capital spending and domestic consumption.
According to Shanghai, China-based boutique brokerage, Hamilton Crawford’s market analysts, the sentiment index for manufacturers increased by one point during the period from July to August in a poll of nearly 600 large and medium sized firms in which approximately 50 percent responded.
The response to the survey was at its most favorable in more than a decade, before the global financial crisis struck economies around the world.
Many Chinese manufacturing companies expect profits to increase this year, especially those in IT related sectors. This confidence is fueled by an increased demand for IT and tech related products in China and neighboring Taiwan.
However, echoing some circumspection regarding the overall outlook, the manufacturers' index dropped to 26 points towards the end of 2016 with the yen growing stronger amid worries surrounding North Korea’s nuclear and missile agendas.
The service-sector index was expected to drop further to 25 in November whilst it is predicted that the retailer sentiment index will rebound in November, emphasizing an increase in household consumption and firm incomes spurred by a tight employment market.
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Source: Hamilton Crawford