Business sentiment among large Japanese manufacturers worsened in December for a fourth straight quarter to a nearly seven-year low, reflecting a global economic slowdown and spending battered by a consumption tax hike, the
The key index measuring confidence among companies, such as automobile and electronics makers, dropped from 5 in September to zero, the lowest level since a minus 8 was logged in
The reading was weaker than the average market forecast of 3 in a
In a bid to bolster the country's economy, Prime Minister
Despite the stimulus, the Japanese economy may face an uphill battle.
The Tankan results may put more pressure on the
Minami said the latest survey showed that the momentum toward the
The Tankan index for large nonmanufacturers, including the service sector, stood at 20, down from 21 in the September survey, a second straight quarterly decline.
The outcome was better than the average market projection of 16 but indicated there has been some negative impact on personal spending from the
Spending in households with two or more people dropped 5.1 percent in October from a year earlier, declining at the fastest pace in more than three and a half years, according to government data.
The Tankan indexes represent the percentage of companies reporting favorable conditions minus the percentage reporting unfavorable ones.
The index for large manufacturers is forecast to remain at zero in the next quarterly survey as some people expect trade tensions between
Among large manufacturers, 11 out of a total of 16 sectors posted declines from the previous quarter. Automakers' sentiment fell to minus 11 in December from plus 2 in September, dropping into negative territory for the first time since
"Many manufacturers still voiced concerns over the prolonged
In the nonmanufacturing sector, sentiment among retailers dropped to minus 3 from plus 4, logging the first minus figure since
But sentiment in the accommodation, eating and drinking services sector improved to 11 from 9, supported by robust spending by foreign tourists during the Rugby World Cup hosted by
Large companies -- those with capital of more than
Large manufacturers expected an exchange rate of
The
==Kyodo
© Kyodo News International, Inc., source