Business sentiment among large Japanese manufacturers is widely expected to worsen for the fourth straight quarter in the upcoming central bank Tankan survey. Many economists believe surging energy and raw material prices as well as a slowdown in overseas economies to weigh on sentiment.

The Bank of Japan will release the quarterly report on Wednesday.

Twelve out of the 13 think tanks expect the index for major firms in the manufacturing sector to worsen. Their median projection is plus six, down two points from the previous survey.

As for large non-manufacturers, almost all of the think tanks forecast an improvement in sentiment. The median projection is plus 17, up three points. Analysts expect the mood to improve on an increase in tourism from overseas following the lifting of entry restrictions and a government campaign to promote domestic travel.