Business sentiment among major manufacturers dropped by 8 points to 11, marking the biggest drop in three years, according to the latest Bank of Japan "tankan" survey released Tuesday.
The BOJ's key quarterly survey said business confidence for big manufacturers fell to 11 from 19 in the December tankan, marking a second straight quarterly decline for an economy hit by the U.S. subprime loan crisis and rising oil prices. The index was lower than the average projection of 13 by 23 think tanks surveyed.
Although a figure above zero is generally positive for the economy, it is the overall trend that is most important.