Business confidence improved in all industry areas in the January-March quarter for the first time in 10 quarters, but lingering overcapacity at manufacturers suggests a slow recovery in capital investment in the near future, the government said Wednesday.

The Cabinet Office said its Business Survey Index in the reporting quarter stood at minus 37, remaining in negative territory for the fifth straight quarter.

But the index moved upward notably, improving from minus 62 in last year's July-September period and minus 59 in the October-December quarter.