World

Bank of Japan 'tankan' survey shows business conditions stable, but outlook bleaker

A survey by Japan's central bank says sentiment among big Japanese manufacturers is steady, though companies in all sectors expect conditions to deteriorate in the coming months.

The Bank of Japan's "tankan" survey, released Monday, remained at 12 as of December, unchanged from September. The tankan measures corporate sentiment by subtracting the number of companies saying business conditions are negative from those responding they are positive.

The survey for the coming quarter showed both manufacturers and other companies were pessimistic about the outlook for sales and for investment in the world's third-largest economy.

Japanese companies have seen their profits soar since Prime Minister Shinzo Abe took office three years ago and initiated a recovery strategy that relies heavily on monetary stimulus. But investment and wages have lagged expectations, slowing growth.