Sentiment among businesses worsened in the quarter to June, reflecting concerns over the Shanghai lockdown and lingering supply shortages.
A key sentiment index among large firms stood at 9 from 14 in March, according to the Bank of Japan’s quarterly tankan corporate survey.
The data marked the second straight quarter of weaker sentiment and were 12 points below estimates.
The index represents the percentage of businesses that said business conditions were favorable minus those that said they were unfavorable.
The index, which measures the sentiment of large firms outside manufacturing, improved to 13 from 9 points in the previous survey.
Restaurants and retail businesses are gradually returning to normal operations after the number of coronavirus cases has decreased.
Meanwhile, large firms plan to increase capital spending by 18.6% in the year to March 2023, up from plans for a 2.2% increase in the previous March survey.
Source: Capital
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