Confidence among Japan’s large manufacturers deteriorated to a two-year low, supporting views that incoming central bank Gov. Kazuo Ueda will maintain an ultraeasy monetary policy for a while longer.
An index of sentiment among the country’s biggest manufacturers declined to 1 in March from 7, according to the Bank of Japan’s quarterly tankan report released Monday. The reading worsened for five straight quarters and fell below an economists’ forecast of 3.
The business mood among large nonmanufacturers slightly improved to 20 from 19, marking the highest in a pandemic recovery. A positive number means optimists outnumber pessimists.