Business confidence at Japan's large manufacturers in the October-December quarter worsened for the first time in 21 months, and the outlook for next quarter is even dimmer, according to the Bank of Japan's closely watched "tankan" survey released Wednesday.
The outcome gives credence to recent worries that the country's three-year-long economic recovery has finally peaked amid slackening exports, slower demand for IT devices, high oil prices and a stronger yen, economists said.
The quarterly survey showed that the business confidence index for large manufacturers fell to 22 from 26 in the previous quarter. Twenty-six is the highest figure since May 1991.