By Kantaro Komiya
TOKYO, Jan 14 (Reuters) – Japanese manufacturers’ confidence slipped to a six-month low in January, albeit still in positive territory, with companies in the oil and steel sector particularly disheartened by lacklustre demand in major economies, the Reuters Tankan poll showed.
The monthly poll, which tracks the Bank of Japan’s closely watched tankan survey, showed the manufacturers’ index declined to plus 7 from plus 10 in December, down for a second straight month.
Materials industries had some of the biggest drops in sentiment with the oil and ceramics sector plummeting 25 points to zero, the steel sector sliding 11 points to minus 44 and the chemicals industry losing five points to plus 6.
One steelmaker pointed to a slump in Chinese orders for car-related items, while a chemical firm cited slower consumer spending in the U.S. and China.
The indexes are calculated by subtracting the percentage of pessimistic responses from optimistic ones. A positive figure means optimists outnumber pessimists.
The auto and electronic machinery sectors saw smaller declines in confidence. A machinery maker manager cited shrinking exports to the U.S. due to tariffs.
The poll was conducted between December 24 and January 7, with just under 240 companies responding. All replied on condition of anonymity.
Non-manufacturers’ sentiment dipped to plus 32 from plus 33, led by wholesalers, which fell 10 points, and retailers, which dropped 7 points. Other sectors such as information, transport and real estate saw an improvement.
Service sector firms noted the impact of fewer Chinese tourists to Japan amid a bilateral diplomatic row.
A manager at a department store said the industry is struggling, with sales to foreign tourists having tumbled 40%.
But others said the fallout had not been as severe as expected.
“Inbound demand remains strong overall, despite some impact from Japan-China tensions,” one airline manager said.
Looking ahead, manufacturers anticipate sentiment will recover to plus 10 by April, while non-manufacturers forecast conditions deteriorating further to plus 26.
(Reporting by Kantaro Komiya; Editing by Edwina Gibbs)
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