Corporate Sentiment in Japan Slumps to Near Three-Year Low
- Optimism among businesses is waning as the yen strengthens
- Companies are paring their plans for capital expenditure
Japanese Business Sentiment Wanes With Yen Woes
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Sentiment among Japan’s large manufacturers dropped to the lowest level since mid-2013 as a stronger yen risks eroding company profits, undermining efforts to spur a recovery in the world’s third-largest economy.
The Tankan index of confidence among large manufacturers stood at 6 in March, the Bank of Japan said Friday, declining from 12 three months ago. A positive number means there are more optimists than pessimists among manufacturers. Economists had forecast 8 in a Bloomberg survey.