Economists: Tankan Survey Expected to Show Slight Decline in Manufacturing Sentiment

On June 30, according to expectations from economists surveyed by data provider Quick, the Bank of Japan's Tankan business sentiment survey, set to be released on Wednesday, is expected to show a slight deterioration, largely unaffected by the negative impacts of the Middle East conflicts. The diffusion index measuring sentiment among large manufacturers is expected to be positive 16 in the June survey, down from positive 17 in March. Ryo Seki, an economist at Mizuho Securities, stated, 'Although the business sentiment in the materials sector is considered to have worsened due to soaring resource prices and supply shortages caused by the situation in Iran, the sentiment in the processing sector may have improved thanks to strong demand related to semiconductors.'