Business confidence among major Japanese manufacturers deteriorated in March to 12 from 14 three months earlier, weighed down by uncertainty caused by U.S. President Donald Trump’s tariff policies, the Bank of Japan’s Tankan survey showed Tuesday.
The sentiment index measuring confidence among companies such as those in the auto and electronics sectors, marking a decline for the first time in four quarters, matched the average market forecast in a Kyodo News survey.
Photo taken from a Kyodo News helicopter in March 2025 shows vehicles lined up at a logistics center in Kawasaki, Kanagawa Prefecture. (Kyodo)
The index for large nonmanufacturers, including the service sector, rose to 35 from 33 in the previous survey in December, rising for the first time in two quarters.
The Tankan index represents the percentage of companies reporting favorable conditions minus the percentage reporting unfavorable ones.
Japanese companies expect the U.S. dollar to trade at 147.06 yen in fiscal 2025 from April, compared with 147.94 yen for the just-ended business year, the survey showed.
The latest data will be among the materials assessed at the BOJ’s two-day policy meeting from April 30 when it will discuss if further interest rate hikes are necessary.
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AloJapan.com