Tokyo, 3 October, /AJMEDIA/
Sentiment among major Japanese manufacturers worsened for the third straight quarter, down to 8 in September from 9 three months earlier amid higher raw material costs, Bank of Japan data showed Monday.
The mood among nonmanufacturers, meanwhile, improved to 14 from 13 in the previous survey, up for the second straight quarter, as economic activity picked up pace with the removal of anti-coronavirus curbs.
The Tankan index represents the percentage of companies reporting favorable conditions minus the percentage reporting unfavorable ones.
The reading of the key index measuring confidence among companies such as those in the auto and electronics sectors compares with an average market forecast of 11 in a Kyodo News survey.
Higher energy and raw material costs have cast a pall over the economic outlook, prompting companies to pass on increased costs to protect their profits.
Sentiment among big manufacturers is expected to improve slightly to 9 over the coming months and the mood among nonmanufacturers will likely drop to 11, the data showed, weighed down by higher input costs.