FX.co ★ Japan Business Sentiment Weakens in Q1

The Bank of Japan's index for large manufacturers decreased to 12 in the first quarter of 2025, a decline from 14 in the preceding quarter, signaling its lowest point in a year as apprehensions regarding U.S. tariffs dampened sentiment. The decline in confidence was most pronounced among companies in the textile, petroleum and coal products, iron and steel, basic materials, and pulp and paper industries. Conversely, there was an improvement in outlook for sectors such as shipbuilding and heavy machinery, lumber and wood products, motor vehicles, nonferrous metals, and electrical machinery. Looking ahead, large manufacturers expect the index to remain steady, projecting an outlook of 12.