The mood among Japan's big manufacturers soured for a second straight quarter in the three months to June, a central bank survey showed Friday, hit by rising input costs and supply disruptions caused by China's strict COVID-19 lockdowns.
But confidence among big nonmanufacturers improved in the quarter, the tankan quarterly survey showed, suggesting service-sector firms are shaking off the drag from the pandemic as the government lifts curbs on activity.
Firms expect to ramp up capital expenditure and are steadily passing on costs to consumers, the tankan showed, suggesting the economy remains on course for a moderate recovery.