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Japanese business mood to worsen

Japanese business mood to worsen
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Japan’s major manufacturers expect business conditions there to worsen in the next three months following the earthquake on 11 March. That was the finding of the latest Bank of Japan survey of companies.

But analysts warned it was difficult to get a true picture of the business mood in the country from that survey

Japan’s central bank has to decide this week whether it eases its monetary policy further to stimulate the economy which was in a moderate recovery.

The BOJ is expected to revise down its economic assessment at a two-day rate review that ends on Thursday, sources familiar with the central bank’s thinking said.

A monthly survey of company purchasing managers last week showed Japanese manufacturing activity slumped to a two-year low in March and posted its steepest monthly decline on record as the earthquake and tsunami disrupted supply chains and production operations.