TOKYO, June 17 : Japanese manufacturers' sentiment improved for the second consecutive month in June, as persistent semiconductor demand supported chemicals and machinery makers, the latest Reuters Tankan survey showed.The monthly poll, a leading indicator of the Bank of Japan's quarterly Tankan business survey, revealed that manufacturers' sentiment rose to plus-13 in June from plus-8 in May.Industries benefiting from strong chip demand led gains in the manufacturers' confidence, with the index for the chemicals sector rising to plus-20 from plus-6. "Despite geopolitical tensions, demand remains robust, especially in semiconductor-related sectors," a manager at a chemical company said.A boost from chip demand was also noted by some electronics and machinery firms. "Orders are booming, mainly driven by demand for the semiconductor market," said a manager at an electronics firm.
The June survey, conducted from June 3 to June 12, received responses from 215 out of 490 firms polled. The indexes are calculated by subtracting the percentage of pessimistic responses from the percentage of optimistic ones, with positive figures indicating net optimism.Non-manufacturers' sentiment rose to plus-32 from plus-29, driven by stronger confidence in the real estate and construction sector."Despite rising costs, demand for housing remains robust, and we are seeing a steady flow of new projects," a manager in the real estate industry said.Looking ahead, manufacturers expect sentiment to remain stable, with the index forecast to stay at plus-13 in September. Non-manufacturers are more cautious, with their index projected to fall to plus-19, reflecting concerns over geopolitical risks and supply chain challenges. The transport machinery sector, which includes Japan's key automakers, was among the most pessimistic about outlooks, with their index forecast to fall to minus-13 in September from plus-13 in June amid lingering concerns about supply chain disruptions."We are facing ongoing challenges in sourcing materials due to geopolitical tensions," a transport machinery company manager said.U.S. and Iranian officials said they had agreed on a framework to end their war, which, if formalised, could help boost sentiment. But supply chain disruptions could take a while to disappear.
