Japan’s Manufacturer Sentiment Worsens in Support of BOJ Policy

  • Manufacturers’ confidence falls to an over two-year low
  • Service sector sentiment continues to improve on tourism boost
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Confidence among Japan’s large manufacturers deteriorated to a two-year low, supporting views that incoming central bank governor Kazuo Ueda will maintain an ultra-easy 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.