Japan’s business mood worsens as costs cloud outlook

By Leika Kihara and Tetsushi Kajimoto

TOKYO (Reuters) – Japanese manufacturer’ business mood worsened in the three months to September and corporate inflation expectations hit a record high, a central bank survey showed, as stubbornly high material costs clouded the outlook for the fragile economy.

Corporate capital expenditure plans for the current fiscal year stayed strong, the Bank of Japan’s “tankan” survey showed, thanks in part to the boost to exporters from the weak yen.