Japan business mood to worsen after quake -BOJ tankan

(For more stories on the Japanese economy, click [ID:nECONJP])

TOKYO, April 4 (Reuters) – Japanese big manufacturers expect conditions to worsen
significantly in the next three months, responses to a Bank of Japan survey collected after the
March 11 earthquake showed on Monday. It was a reversal of the full survey results.

The BOJ separated figures in its tankan survey of corporate sentiment for March into
responses obtained before and after the earthquake to obtain a clearer picture of how firms
perceived the effects of the devastation.

The post-quake index for big manufacturers’ sentiment was plus 6 for March, unchanged from
the full survey.

But the index for June was seen at minus 2 against the full survey’s plus 2, indicating that
big manufacturers expect to turn pessimistic.

The separated survey figures are the first such data to quantify the impact of the quake,
tsunami and a subsequent nuclear crisis on business confidence. But the BOJ warns against
reading too much into the tankan because its post-quake sentiment index only takes into account
the views of 23.6 percent of the respondents to the survey.

In the regular tankan survey for March was compiled from Feb. 24 to March 31.

(Reporting by Rie Ishiguro and Tetsushi Kajimoto)

Japan business mood to worsen after quake -BOJ tankan