Business confidence among large manufacturers rose in March from three months earlier for the fifth straight quarterly improvement, the Bank of Japan said Tuesday in its "tankan" report, but many companies were wary about prospects amid fear of weakening demand after the consumption tax hike.
The report's headline index measuring sentiment among big manufacturers such as carmakers and high-tech companies increased to plus 17 from December's plus 16, slightly lower than the average forecast of plus 18 in a Kyodo News survey.
The figure was the highest since December 2007, reflecting brisk consumer spending before Tuesday's consumption tax hike to 8 percent from 5 percent.