The nation's largest manufacturers were pessimistic about business prospects for a third consecutive quarter after the March 11 earthquake and tsunami caused power shortages and disrupted supply chains.
Sentiment among manufacturers with more than ¥1 billion in capital was minus 23.3 points this quarter compared with minus 3.2 points three months ago, a government report showed Tuesday. A negative number means pessimists outnumber optimists.
Tuesday's report adds to evidence that the economy may contract this quarter before returning to growth later this year. Toyota Motor Corp. said last week that profits will fall almost a third this year after the Great East Japan Earthquake.