LOC10:21
07:21 GMT
TOKYO, April 1 (KUNA)-- Business confidence among major Japanese manufacturers in March declined from three months ago, marking the first deterioration in four quarters, the Bank of Japan said Monday.
The central bank's quarterly survey showed the business sentiment index among big manufacturers, such as automakers and electronics makers dropped to plus 11 from plus 13 in the previous December survey.
The decline reflects factory shutdowns of Daihatsu Motor Co., a Toyota Motor Corp. subsidiary that was forced to suspend shipments of cars due to a safety testing scandal in December.
The headline index represents the percentage of companies which are positive about their business minus the percentage of those who gave negative replies. Thus, a positive number means optimists outnumber pessimists. The "tankan," which means short-term economic outlook, is the most closely watched index of business confidence for the world's third-largest economy.
Confidence among large retailers, banks, real estate companies and other non-manufacturers climbed 2 points to plus 34, up for the eighth quarter in a row and the highest since August 1991, thanks to strong inbound tourism.
Looking ahead, major firms are cautious in their outlook in the next three months. Large manufacturers expect their business sentiment index to worsen 1 point to plus 10 in the next June survey, while major non-manufacturers predict a 7-point drop to plus 27.
The latest poll was conducted between Feb. 27 and March 29, covering 9,118 companies, of which 99.0 percent responded.(end)
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