BANGKOK (AP) — A quarterly survey by Japan’s central bank shows business sentiment has improved slightly, especially in major heavy industries such as automaking, fossil fuels and machinery, while services industries were less upbeat.
The survey released Friday by the Bank of Japan, called the tankan, might influence the central bank's decision on whether to raise its benchmark interest rate next week. It shows the difference between companies saying they are optimistic about business conditions and those that are pessimistic.
The latest survey's outcome undermined expectations for a rate hike, and the Japanese yen weakened, with the U.S. dollar trading at 152.90 yen on Friday, near its highest level in two weeks. Meanwhile, the benchmark Nikkei 225 stock index fell more than 1%.
“Expectations are for the BOJ to maintain its short-term interest rate at 0.25% next week, marking the fourth consecutive meeting with no change,” IG said in a commentary.
Japan’s economy grew at a revised 1.2% annual pace in the last quarter, helped by sustained consumer spending. But the outlook ahead is uncertain, IG economists noted, given U.S. President-elect Donald Trump's vows to impose higher tariffs on imports from many countries, which could jolt both the regional and the global economy.
“The mediocre increase in business conditions across all firm sizes in the latest tankan suggests that activity is unlikely to rebound meaningfully this quarter, following a slowdown in (the last quarter),” Toh Au Yu of Capital Economics said in a commentary.
One of the biggest obstacles for Japanese firms is a severe labor shortage as the work force shrinks along with the overall population, Toh said. The tankan showed a negative 36 sentiment for employment, unchanged from the previous quarter.
Still, overall business sentiment for both manufacturers and non-manufacturers edged up to 15 from 14 in the previous survey.
The sentiment index for large manufacturers rose to 14 in December from 13 in September, partly due to automakers resuming production following certification scandals in the industry.
Construction and real estate also improved.
But while automakers and other big industries gained ground, sentiment among retailers and other service industries deteriorated, falling to 33 from 34, though it remained in positive territory.
The index for retailers dropped sharply, to 13 from 28.
The Bank of Japan began earlier this year to shift away from a negative interest rate policy aimed at keeping credit super cheap to support the economy as the country's population shrinks, sapping demand. The ultra-lax monetary policy was kept in place for years to counter a long spell of deflation, when demand was so slack that prices fell.
But global price increases following the COVID-19 pandemic, coupled with a weakening of the Japanese yen against other currencies, has pushed prices above the BOJ's target of about 2% inflation, enabling it to begin shifting to a more conventional stance.
Japan racked up a trade deficit in October for the fourth month in a row, as the weak yen and rising energy prices kept import costs high.
Prime Minister Shigeru Ishiba has proposed raising Japan's basic tax-free income allowance, increasing take-home wages and paying subsidies to low-income families to help boost consumer spending.
But his minority government is likely to struggle to gain support from the opposition on budgets and other legislation, raising the risk of political deadlocks that could stymie economic initiatives.
FILE - An aerial view of the skyscrapers and the densely packed buildings are seen on Jan. 29, 2021, from an observation deck in Tokyo. (AP Photo/Kiichiro Sato, File)
BEREA, Ohio (AP) — The Cleveland Browns quickly began trying to fix a brutal, broken 2024 season.
There's no shortage of items needing repair.
Hours after finishing with a loss at Baltimore in the finale of a season that was expected to carry into the playoffs, coach Kevin Stefanski fired offensive coordinator Ken Dorsey and offensive line coach Andy Dickerson.
Those were the initial moves in what will be another busy winter as Cleveland crawls from the wreckage of the franchise's 18th double-digit loss season since 1999.
Dorsey and Dickerson both spent just one season with the Browns (3-14), who closed with a six-game losing streak and are now guaranteed to have one of the first three picks in this year's NFL draft — not what they had in mind after making the playoffs last season.
“Just bottom line, I want to go in a different direction,” Stefanski said Sunday, adding he didn't expect any other “major” changes on his staff. “We need to improve, as everybody knows, on the offensive side of the ball. That’s what we plan to do.”
Dorsey and Dickerson were informed of the moves in the aftermath of the team's 35-10 loss in Baltimore on Saturday.
A two-time AP Coach of the Year, Stefanski survived one of the most disappointing seasons in team history along with general manager Andrew Berry, who is scheduled to meet with the media on Monday.
Stefanski's search for his third offensive coordinator since 2020 is already underway. Tight ends coach Tommy Rees is believed to be one of the internal candidates.
There are several other pressing issues for the Browns, chiefly at starting quarterback and the future of superstar defensive end Myles Garrett, who hinted after Saturday's game that he could be in line for a contract extension.
"There’ll be something coming,” said Garrett, who has made it clear to owners Dee and Jimmy Haslam that he doesn't want to be part of any rebuild and recently opened the possibility of asking to be traded.
Garrett, who has two years left on a $125 million deal, wants to see the team's offseason plans — on both sides of the ball.
While Cleveland's defense underperformed this season, the offense was atrocious.
With Dorsey in charge, the Browns finished last in scoring and only reached at least 20 points in three games. Dorsey, who was fired by the Buffalo Bills last season, had been brought to Cleveland to help structure an offense around quarterback Deshaun Watson's versatile skillset.
But Watson never got going as he struggled in his return from major shoulder surgery and the Browns went just 1-6 in his starts before he ruptured his Achilles tendon in October. That was followed by Stefanski handing play-calling duties over to Dorsey and the offense showed some life when Jameis Winston took over at quarterback.
However, the spark was short-lived and Winston got benched after throwing eight interceptions in three games. Dorian Thompson-Robinson started twice and Bailey Zappe played against the Ravens — Cleveland's 40th starting QB since 1999.
Replacing the respected Bill Callahan, who left to coach with his son, Brian, in Tennessee was going to be tough for any coach. The Browns' running game never got rolling under Dickerson's direction — it didn't help running back Nick Chubb was recovering from knee surgery — and Cleveland's O-line gave up 66 sacks.
Right tackle Jack Conklin said the switch in offensive philosophies was detrimental.
“It was a tall task for anybody to take over,” Conklin said. “I feel bad for Andy having it go this way. Obviously wanted to have success in doing this other offense, but it just didn’t work.”
Left guard Joel Bitonio believes returning to a run-heavy, play-action scheme would be a wise move.
“It’s what Coach Stefanski is most comfortable with,” Bitonio said. “The line was kind of built that way as well. I thought me and Wyatt (Teller) as pullers running some outside zone, That was what I did well in my career, and I probably pulled less than 10 times this year overall. And there were games in my career where I pulled eight or 10 times in a game, so it was different, for sure.”
NOTES: Stefanski stressed that Watson's health is paramount in whether he's in the competition to start next season. He has two years left on a fully guaranteed $230 million contract the team recently restructured to give them future salary cap relief. ... Stefanski did not have MRI results on rookie DT Mike Hall Jr., who was carted off the field against the Ravens with a leg injury. ... Stefanski would only say he's “hopeful” that LB Jeremiah Owusu-Koramoah will play next season after finishing on injured reserve with a neck injury. ... Bitonio said he'll take some time to “rest the body and mind” before deciding if he'll play a 12th season.
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FILE - Andy Dickerson, Cleveland Browns offensive line coach, talks with Michael Dunn (68) during an NFL football training camp practice in White Sulphur Springs, West Virginia, Thursday, July 25, 2024. (AP Photo/Sue Ogrocki, File)
FILE - Cleveland Browns offensive coordinator Ken Dorsey watches as players warm up before an NFL football game against the Los Angeles Chargers Sunday, Nov. 3, 2024, in Cleveland. (AP Photo/Sue Ogrocki, File)
