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MNI BRIEF:BOJ March Tankan Shows Sentiment Drop On Energy, Yen

TOKYO (MNI)

Japanese business sentiment broadly worsened from three months ago, hit by higher costs caused by higher imported energy costs and a weaker yen, the Bank of Japan's March Tankan business sentiment survey published on Friday showed.

The diffusion index for sentiment among major manufacturers stood at +14 in March, down from +18 in December and for the lowest level since June 2021. The median forecast was +12. The index is projected to fall to +9 in June, see: MNI SURVEY: BOJ March Tankan Survey To Show Weaker Corp Views.

The Tankan diffusion index is calculated by subtracting the percentage of companies reporting deteriorating business conditions from those reporting an improvement. A positive figure indicates the majority of firms see better business conditions. BOJ officials are now focused on revised capex plans in the the June Tankan with plans now mostly steady in the latest survey

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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