An index monitoring business sentiment in Japan slowed in the third quarter of 2018, the Bank of Japan said on Monday in its quarterly Tankan business survey.
The large manufacturers’ index came in with a score of +19, missing expectations for +22 and down from +21 in the previous quarter.
The outlook came in at +19, also shy of expectations for +20 and down from +21 in the three months prior.
The survey is closely watched by the Bank of Japan for formulating policies.
Large industry capex for the current fiscal year is now seen higher by 13.4 percent, missing forecasts for a gain of 13.9 percent and down from 13.6 percent in the previous quarter.
The small manufacturing index came in at +14, beating expectations for +13 and unchanged from Q2. The outlook was +11, missing forecasts for +12, which would have been unchanged.
The small non-manufacturing index had a score of +10, beating forecasts for +6 and up from +8 in the previous three months. The outlook came in at +5, again topping forecasts for +4 and unchanged.
The sentiment indexes are derived by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists.