Some 63 percent of major companies expect the country's economy to grow moderately in 2019, showing less optimism than a year ago, as they brace for a likely drop in consumer demand following a consumption tax hike in October, a Kyodo News survey shows.

In the survey of 115 companies including Toyota Motor Corp. and Sony Corp., conducted between late November and mid-December, 33 percent predicted the economy to be flat while 3 percent said it would retreat slightly.

None of the companies predict strong economic growth. In last year's survey, 82 percent said the nation's economy would grow moderately or strongly in 2018.