TOKYO – A quarterly central bank survey shows a mixed outlook for Japan's recession-stricken economy, showing the challenge Prime Minister Shinzo Abe faces after his election victory on Sunday.
The Bank of Japan's "tankan," a leading measure of business sentiment, showed a slight deterioration in overall expectations among manufacturers. More than two-thirds of the large and medium-sized companies surveyed said they viewed the outlook for the coming quarter as not so favorable.
It showed Japanese businesses anticipate weak demand both overseas and in Japan for their products.
Japan's economy slipped into recession after a sales tax hike in April chilled demand, stalling the recovery. Abe delayed a tax hike due for 2015 to avoid further growth disruptions, and has said he will push ahead with reforms to end two decades of stagnation.