The Reuters Tankan sentiment index for manufacturers in Japan rose to 8 in March 2022 from 6 in the previous month, improving for the first time in three months as automakers became less pessimistic. The sub-index for automakers jumped to a 3-month high of minus 14 in March from minus 29 a month ago. Support also came from growing optimism among food and precision machinery producers, while the steel/nonferrous metals sub-sector turned less negative. Looking ahead, managers saw business sentiment rising to 11 three month from now. Meanwhile, managers voiced concerns about a wide array of downside risks that cloud the outlook, including the Russia-Ukraine war, a hit to output from Omicron infections, supply disruptions and soaring costs for manufacturers.
