Confidence among large manufacturers declined in the fourth quarter as the recession offset a boost from the weaker yen, the Bank of Japan's "tankan" survey showed Monday, underlining the economic challenges for Prime Minister Shinzo Abe after his electoral victory.
The tankan index of major manufacturers slipped to 12 in December from 13 in the previous quarter, lower than the median estimate of 13 in a Bloomberg News survey of economists. The index is forecast to drop to 9 when the next quarter's data are released in March.
The recession and an election victory that heaps pressure on Abe to deliver on promised growth-boosting reforms are raising the stakes for his efforts to revive the world's third-biggest, yet long-dormant, economy.