For 2nd Quarter
Provided by: Bank of Japan
Official Release: PDF

Confidence among Japan's manufacturers fell to a 4-year low in the 2nd quarter, with profits set to decline for the first time since the 2001 recession. The index fell to 5 points in June, from 11 in March, though it was expected to fall even further. The Japanese economy is straining as consumers pressured by a weaker labor market and higher inflation cut back on spending. Lower sales coincide with higher costs for companies for energy and commodities, eroding profits. With the slowdown that started in the US spreading to the UK and the Euro-zone, Japan's export industry will have to rely on emerging markets such as China and Russia to bolster demand. Companies said they will increase capital spending 2.4%, a poor reading, as they prepare for a slowdown. 

For 2nd Quarter
Provided by: Bank of Japan
Official Release: PDF

For 1st Quarter
Provided by: Bank of Japan

Pre-Release from MarketWatch:

"An influential Bank of Japan survey is expected to show on Tuesday that confidence among Japan's larger manufacturers deteriorated sharply in the three months ending March 31 as a slowing U.S. economy, rising yen and higher energy and food prices undermine business conditions."

Post-Release:

The Tankan index of manufacturer sentiment slid to 11 points in March from 19 in December, worse than economists had forecast. Exporters may be cutting back capital spending and production as the Japanese economy's recovery is losing steam. Exports have been a main driver of recent growth, and much will depend how the US and other large economies perform in the face of the global slowdown caused by the credit crunch and financial crisis of last year.