Business sentiment among large manufacturers deteriorated in December, according to the Bank of Japan's quarterly "tankan" index released Thursday, underscoring the growing concern over Europe's sovereign credit risk and the persistent rise of the yen.
The business index for major manufacturers — companies capitalized at ¥1 billion or more — fell to minus-4, down 6 points from September, when it was plus-2. The reading in June was at minus-9 following the Great East Japan Earthquake.
"The quarterly numbers are not surprising and within our expectations. The downturn of the overseas economy and the strong yen influenced the outcome," Nobuyasu Atago, senior researcher at the Japan Center for Economic Research, told The Japan Times.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.