Business confidence among Japan's largest manufacturers fell the most in 34 years, the Bank of Japan's quarterly Tankan survey revealed Monday, DPA reported. An index that measures confidence among the largest makers of cars and electronics dropped to minus 24 from minus three, according to the survey. The decrease of 21 points is the largest since February 1975, but analysts said it was expected. This indicates that many companies are likely to slash more jobs and drastically lower spending, which will push the economy into a deeper recession. As the export slowdown spreads to emerging markets, which propped up Japanese car and electronics makers when the demand from the United States and Europe dwindled, Japanese manufacturers said they planned sharp cuts in factory output. The Japanese yen's 17-per-cent gain against the dollar since September has lowered the value of overseas sales. Last month, the central bank's governor, Masaaki Shirakawa, described the economic decline as "drastic," and the bank cut its key lending rate to 0.3 per cent in October.
