Private-sector economists expect Monday's Bank of Japan "tankan" quarterly survey to show a decline in business confidence among major manufacturers for the first time in two years and three months, according to a Kyodo News survey conducted Thursday.
The 28 economists surveyed forecast on average a zero diffusion index reading of major makers' confidence, down from 10 logged in the preceding tankan poll in December.
The tankan figures are likely to highlight the rapid shrinkage in the business confidence of managers at large manufacturing firms, which have taken a thrashing from the U.S. economic slowdown and flagging share prices in Japan and overseas. , the poll shows. DI figures at major makers, especially at electronics firms that have seen falls in both exports and demand for information technology products, are likely to show sharp drops from the previous tankan readings. , according to the poll. A DI figure is computed by subtracting the percentage of firms reporting unfavorable business conditions from that of favorable responses.