Japanese business sentiment dips

Japanese business sentiment dips Sentiment among large Japanese manufacturers has turned sharply negative since the March earthquake and tsunami and resulting nuclear crisis, but companies expect conditions to improve over the next three months, the Bank of Japan’s Tankan survey shows.

The closely watched quarterly survey underscored the impact of the disaster on business and current worries about electricity supplies. But it will also reinforce hopes that economic recovery will be swift.

The Tankan’s headline index, which compares the number of large manufacturers reporting positive conditions with those reporting negative views, fell to -9 for June, a decline of 15 points from the +6 reported three months ago. The decline was sharper than economists’ expectations, but the survey forecast an 11-point rebound in the big manufacturers index by September.
http://link.ft.com/r/UXDMSS/TUPZNH/ZBHOFE/D4A21V/9Z28I1/JY/h?a1=2011&a2=6&a3=30