Japan tankan survey: businesses wary, spending plans flat
TOKYO (AP) — A survey by the Japanese central bank finds Japanese businesses remain wary over the outlook for the world's No. 3 economy and generally plan to reduce capital investment.
The Bank of Japan's quarterly "tankan" survey will likely reinforce the conviction among many that more stimulus is needed to sustain growth.
The leading measure of business sentiment showed more than two-thirds of all companies anticipate further deterioration in conditions, with 83 percent of large manufacturers branding conditions "not so favorable" or "unfavorable."
Japanese businesses anticipate weak demand both at home and overseas for their products and higher costs for materials thanks to the weakening Japanese yen.
The economy emerged from a half-year recession last year following a sales tax hike that dented consumer and corporate demand. But growth has remained weak.