Large Japanese businesses remained optimistic in the first quarter even as the United States threatened heavy tariffs on products made by these companies.
In the Bank of Japan’s tankan survey, released on Tuesday, the headline index for big manufacturers was 12, which indicates confidence in the business outlook. The number was down from 14 in December — and was the first drop since the first quarter of 2024 — but some analysts put a positive spin on the news.
“Because of the U.S. tariff hikes and the slowdown in overseas economies, the reading was expected to drop, particularly in the materials sector,” said Shunpei Fujita, an economist at Mitsubishi UFJ Research & Consulting.