Lates News

A survey by Reuters showed that due to strong semiconductor demand supporting the Japanese manufacturing industry, confidence remained relatively optimistic in July (the manufacturing business sentiment index remained at 13), while non-manufacturing confidence (the non-manufacturing business sentiment index fell from 32 to 25) declined due to the Middle East conflict, weak yen, and rising interest rates increasing costs. Manufacturing companies reported a recovery in the semiconductor market (including storage-related demand), with orders for chip applications and AI server-related products rapidly expanding. Orders for electronic components also generally increased. A manager at a precision machinery manufacturer said, "The volume and value of orders are at unprecedented levels, and we are concerned that our production capacity may not keep up." A manager in the service industry said, "Although signs of a resolution to the Middle East issue are beginning to appear, the situation has not yet fully recovered." Looking ahead, manufacturers expect confidence to remain stable, with the business sentiment index expected to inch up to 14 in October, while the non-manufacturing index is expected to remain at 25 because companies are assessing the impact of geopolitical risks and supply chain challenges.