* Manufacturers sentiment index January -1 vs. December -9
* Service sector index -11 in January vs-December -4
* The sentiment of manufacturers, service sector, has not changed much
TOKYO, Jan. 18 (Reuters) – Opinions among Japanese manufacturers stabilized in January to a record low in more than a year since the impact of COVID-19, but service companies grew heavier just as new locks hit most of the population, the Tankan Reuters found an opinion poll.
Manufacturers in the world’s third-largest economy were the lowest since July 2019, although the outlook, especially for services, is clouded by a widespread state of emergency covering Tokyo and centers other populations through February 7.
Driving the development for manufacturers were positive outlook in the chemical, metal products and electrical appliances sub-sectors, according to a monthly poll by Reuters, which oversees the Bank of Japan’s quarterly tank survey.
“The car market is growing rapidly, especially in China, and demand for electronic parts is growing,” wrote a manager of an electrical appliance manufacturer in the survey of 482 large non-financial companies, in the 253 answered anonymously.
The Reuters Tankan sentiment index for manufacturers rose to minus 1 from minus 9 in the previous month, while the service sector index fell to minus 11 from minus 4 in December, according to December 24-Jan. 13 studies.
Reuters Tankan index readings come from removing the percentage of respondents who say bad situations from those who say they are good. Negative reading means pessimists are more than optimists.
A manager at a chemical producer said industry has been recovering since September in response to a recovery in broader market conditions.
Japan’s economy rose 22.9% year-on-year in the third quarter, recovering from the deepest postwar decline in the July-September period when the pandemic erupted economic activity.
The government had already pledged $ 3 trillion to support the economy before Prime Minister Yoshihide Suga this month declared a second state of emergency, which now covers Tokyo, Osaka, Kyoto and other areas that make up 55% of Japan’s population.
Tankan ‘s analysis showed that overall sentiment for the manufacturing sector was on the verge of falling again, with business confidence expected to drop to minus April 2, despite an expected rise among chemical companies.
Ideas in the service industry were expected to improve slightly to 9, with companies emphasizing the revitalization of COVID-19 as a major headache.
“Customer numbers have dropped dramatically in line with the spread of coronavirus infections,” said a sales manager.
Reporting by Daniel Leussink; Edited by William Mallard