TOKYO :Japanese business confidence hit a nine-month low in the first quarter, a central bank survey showed, as companies took a hit from supply disruptions and surging raw material costs caused by the Ukraine crisis.
"The tankan highlighted a strong sense of caution among manufacturers, particularly automakers, over rising raw material costs and chip shortages," said Takeshi Minami, chief economist at Norinchukin Research Institute.The tankan's headline index gauging big manufacturers' mood slipped to plus 14 in March from plus 17 in December, worsening for the first time in seven quarters and hitting the lowest level since June 2021. It exceeded market forecasts of plus 12.
An index gauging big manufacturers' output prices rose to a 40-year high, the tankan showed, a sign more firms are putting higher price tags on their goods.