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Japan sees sharpest biz confidence fall in 34 years

(Xinhua)
Updated: 2008-12-15 16:21

TOKYO -- The business confidence at big Japanese manufacturers logged the steepest fall on a quarter-on-quarter basis in nearly 34 years in the last three months, said the Bank of Japan (BOJ) on Monday.

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The central bank's "Tankan" survey showed that its closely watched confidence index for large manufacturers plunged by 21 points to minus 24 from the third quarter of 2008, the sharpest decrease since February 1975 when the index suffered a 21-point drop.

Japan's declining exports and industrial output amid the slumping global economy were key factors behind the plummet in business confidence, according to the survey.

The world's second-largest economy is possibly heading for a deep recession as companies brace for more global turbulence, analysts said.

For the next three months through March 2009, the confidence index for large manufacturers is projected to fall another 12 points to minus 36, the BOJ said.

The BOJ surveyed a total of 10,409 companies between November 10 and December 12, of which 99 percent responded.