Japan business mood worsens on global slowdown – BOJ tankan

by on September 30, 2012 11:56 pm BST

Sun Sep 30, 2012 7:56pm EDT

Oct 1 (Reuters) – Big Japanese manufacturers’
sentiment worsened in the third quarter from the previous
quarter, a closely watched Bank of Japan survey showed, hurt by
a steady deterioration in export demand as Europe’s debt crisis
simmers and China’s economy slows.

The headline index for big manufacturers’ sentiment was
minus 3 in September, down from minus 1 in June and matching the
median forecast of economists, the quarterly tankan survey
showed on Monday.

Big manufacturers expect conditions to hold steady over the
next three months, with the index for December seen at minus 3,
compared with a median forecast of minus 5.

The survey also showed big firms plan to raise their capital
spending by 6.4 percent in the financial year to next March,
compared with a median forecast for a 5.5 percent increase.

The sentiment indexes are derived by subtracting the
percentage of respondents who say conditions are poor from those
who say they are good. A negative reading means pessimists
outnumbered optimists.