Japanese business confidence sank for the fourth straight quarter in the three months to December as weak demand and rising bankruptcies pressured profit margins.
But the boardroom gloom surveyed by the Bank of Japan in its quarterly Tankan report out today was less pronounced than expected, reflecting hope of a global economic recovery, analysts said.
The index measuring business sentiment amongst large manufacturers slipped five points to minus 38 from minus 33 in the September quarter. The index of large non-manufacturers' confidence fell to minus 22 from minus 17, the central bank said.
Market consensus had forecast that sentiment would plunge to -43 among major manufacturers and slide to -23 among non-manufacturers.
As a detailed study of Japanese businesses and their plans for the months ahead, the quarterly Tankan survey is the central bank's key source of data for planning.
The indices measure the difference between firms saying economic conditions are favorable and those saying they are not. A negative figure means a majority of firms believe conditions are unfavourable.
