BoJ's Tankan survey to show current conditions deteriorated slightly in Q2

In Japan, the main event next week is the Bank of Japan's (BoJ) Tankan Business survey for Q2. Current conditions are usually a good indicator of current GDP growth, while the expectations component has been less successful in predicting future GDP growth. 

"We expect current conditions for particularly large manufacturers to deteriorate slightly in line with our view that GDP growth is poised to slow to just 0.2% q/q in Q2 on the back of a solid 1.0% q/q GDP growth in Q1." estimates Danske Bank

Industrial production is likely to contract in May after increasing 1.2% m/m in the previous month underscoring that industrial production has not yet started to recover substantially after the slowdown since early 2015. 

"However the outlook for both manufacturers and non-manufacturers should continue to improve underscoring that the slowdown in GDP growth in Q2 should prove temporary." adds Danske Bank