Japan: Business confidence records worst reading since December 2020 in March
Business confidence came in at 1.0 in March. March’s result marked the weakest sentiment since December 2020 and was slightly below market expectations. Consequently, the index moved closer to the 0-threshold, indicating reduced optimism among businesses.
Analysts at Nomura commented on the print:
“We think the piece of information in the latest Tankan report that says the most about the direction of Japan’s economy going forward is the widening gap in sentiment, with nonmanufacturers looking decidedly more optimistic than manufacturers.”