Big Japanese manufacturers became more pessimistic as slowdowns in China and Europe sapped export demand and pushed the nation closer to an economic contraction.
The quarterly Tankan index for large manufacturers fell in September to minus 3 from minus 1, the fourth negative reading, the Bank of Japan said today in Tokyo. The median estimate of 18 economists surveyed by Bloomberg News was for minus 4. A negative figure means pessimists outnumber optimists.
Todayâ€™s report follows data last week showing a second monthly decline in industrial production in August, and JPMorgan Securities and Credit Suisse Group AG said that Japanâ€™s economy probably shrank in the third quarter. With consumer prices still falling, the BOJ may be forced to add stimulus again this month as it remains distant from its 1 percent inflation target.
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