TOKYO — Sentiment among Japan’s large manufacturers deteriorated in the three months to March for the first time in nearly two years, reflecting concerns over the war in Ukraine and higher energy and raw material prices.
The main index for large manufacturers’ sentiment was plus 14, compared with plus 17 in the previous survey in December, according to the Bank of Japan’s quarterly tankan corporate survey released Friday. The reading marked the first worsening in seven quarters and was lower than a projection for plus 12 from a poll of economists by data provider Quick.
The index represents the percentage of companies who said business conditions were favorable minus those saying conditions were unfavorable.
The index measuring large nonmanufacturers’ sentiment was at plus 9, compared with plus 10 in the previous survey.
Big companies plan to increase capital expenditures by 2.2% for the new fiscal year that started Friday, compared with plans for a 5.9% increase for the previous year.