The Bank of Japan's Tankan business survey - a quarterly poll of about 10,000 companies - showed a reading of +14 for major manufacturers, lower than the previous +17.
The latest reading - the first decline in seven quarters - comes more than a month after Russia invaded Ukraine, starting a war that has pushed up raw material prices and triggered parts shortages. "Non-manufacturing sentiment held up better-than-expected during the Omicron wave and the labour market continued to tighten," he said.Among large non-manufacturers, confidence fell to +9 from +10.
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