Fears over the global economy and the impact of the consumption tax hike have made manufacturers gloomier about business conditions, the Bank of Japan's latest tankan shows, but not necessarily by enough to push the central bank closer to issuing extra stimulus later this month.
Confidence among Japan's biggest product makers, which include household names such as Toyota, Sony and Canon, fell to 5 from 7, according to the BOJ's quarterly survey gauging the business mood released Tuesday. While that was the worst reading in more than six years, sentiment showed far more resilience than had been expected by economists, who figured the index would slide to 1.
The positive number means optimists among manufacturers still outnumber pessimists despite nine straight months of falling exports and trade tensions between the U.S. and China that cloud the outlook for global growth.