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The June 2023 Reuters tankan outcomes were based on a survey of a total of 493 large corporations, out of which 232 provided a response.

The continuously robust performance of the service sector, aided by the rebound from the effects of Covid, suggests that a decline in exports may be counterbalanced by solid domestic demand.

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Data showing improvement to the Japanese economy will be welcomed by authorities. And improvement does add to the prospect of Bank of Japan policy change. The big biut to that is the Bank has said, over and over again, that it wants sustained and stable inflation at target and is currently not seeing that or expecting it. Indeed, the Bank forecasts CPI to fall from around October.

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On July 3, the upcoming quarterly survey from the Bank of Japan tankan is scheduled to be released.

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The Reuters Tankan is a survey carried out once every three months by the Reuters news organization in partnership with the International University of Japan.

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