Japan manufacturers’ confidence drops

Confidence among Japan's largest manufacturers sagged for a second quarter on rising costs and supply constraints, though the service sector was boosted by economic reopening, a key survey showed Friday.

The Bank of Japan's closely watched Tankan survey showed confidence among large manufacturers at plus nine, below expectations of 12 and sharply lower than the 14 in the March survey. A positive figure means more manufacturers see business conditions as favourable than those that consider them unfavourable.

The survey reaches about 10,000 firms and is considered to be the broadest indicator of how Japan Inc. is faring.

Corporate Japan has faced several problems as the Ukraine war pushes up oil prices amid general inflation that has boosted raw material prices.