Confidence among manufacturers for the April-June quarter fell the most in at least four years because of surging commodity costs and waning demand for cars and electronics, a government survey showed Monday.
Sentiment among manufacturers with more than ¥1 billion in capital was minus 15.1 points this quarter, the lowest since the Cabinet Office and Finance Ministry began compiling the data together in 2004. A negative number means pessimists outnumber optimists.
Stocks dropped and bonds rose after the survey also showed companies are planning to cut spending on factories and equipment by 0.9 percent this business year. The report indicates the Bank of Japan's "tankan," the nation's most-watched business survey, next week is likely to show confidence is down as companies struggle with oil costs that have doubled in the past year.