The appreciation of the yen may put pressure on the confidence of the future manufacturing industry

Japan's manufacturing confidence rose in April but is expected to deteriorate again in the next three months, reflecting concerns about a stronger yen and sluggish overseas demand. Of the 510 large and medium-sized Japanese companies surveyed from April 1-15, 253 responded. Auto and electronics exporters complained about the yen's rapid appreciation. Respondents believed that the appreciation of the yen could hurt Japan's economic recovery prospects and hinder the country's efforts to overcome deflation and economic stagnation. Of the 510 large and medium-sized Japanese companies surveyed from April 1-15, 253 responded. Auto and electronics exporters complained about the yen's rapid appreciation. Respondents believed that the appreciation of the yen could hurt Japan's economic recovery prospects and hinder the country's efforts to overcome deflation and economic stagnation. According to a Reuters Tankan survey, the manufacturing sentiment judgment index was 10 in April and 6 in March, mainly driven by raw material industries such as oil refining and steel. The service sector sentiment judgment index was 23 in April and 24 in March. Indicating that Japan's service sector has deteriorated in April and is expected to worsen due to weak private consumption. Private consumption accounts for about 60% of the Japanese economy. In the survey, a manager at a machinery maker said a nearly 10 percent rise in the yen since February and uncertainty about the Chinese economy had hurt operations. A manager of a motor manufacturing company said that in addition to the impact of the appreciation of the yen, the economic environment in Asia and Japan is not good. And a chemical company interviewee said that despite the current strong yen and moderate share price, our business has not deteriorated, but we are very worried about the future. The survey believes that Japan's future manufacturing confidence may deteriorate. It is expected that the manufacturing climate judgment index will fall back to 6 in July, while the non-manufacturing climate judgment index will drop to 15 in July. The survey also showed lingering worries that Japan's economy may contract for the second quarter in a row after analysts cut their forecasts for Japan's first-quarter economic growth. Two consecutive quarters of economic contraction means a technical recession. Earlier, the latest Tankan survey released by the Bank of Japan showed that the business climate of Japan's large manufacturers has deteriorated to the lowest in nearly three years and is expected to continue to deteriorate in the next quarter, underscoring Prime Minister Shinzo Abe and the Bank of Japan are taking more steps to improve the situation. pressure to revive a weak economy. Bank of Japan (BOJ) Governor Haruhiko Kuroda also said that one of the reasons for the deterioration in the confidence of large Japanese manufacturers is the recent appreciation of the yen. The rise in the yen does have a negative impact on confidence in the large manufacturing sector, hopefully the exchange rate movement reflects Japan's economic fundamentals. So he believes that if necessary, the Bank of Japan can further cut the current deposit rate of -0.1%.