The Bank of Japan's latest quarterly Tankan survey shows business sentiment among major manufacturers stayed flat, amid mixed signals from the economy.

The BOJ polled nearly 10,000 domestic companies from early November to early December. It said on Monday the index for large manufacturers remained at plus 18, unchanged from the previous survey in September.

A positive number indicates that more companies feel business is good than those saying business is bad.

There's a growing view that the impact of the coronavirus pandemic is easing, but many firms are worried that higher prices for crude oil and other raw materials, as well as prolonged supply chain delays will hurt earnings.
The index for large non-manufacturers rose 7 points to plus 9, improving for the sixth quarter in a row.

Recovery is picking up among face-to-face service providers, including hotels and restaurants, as well as amusement parks and health clubs. That comes after the pandemic state of emergency was lifted in October.

The BOJ says the latest reading for large non-manufacturers marks the highest level since the pre-pandemic survey in December 2019, when the index hit plus 20.

However, the central bank predicts worsening sentiment among both large manufacturers and non-manufacturers three months from now, due to rising raw materials costs.