The Bank of Japan's "Tankan" survey shows that business sentiment among the country's major manufacturers has worsened.

The trend has continued for five straight quarters, on rising raw-material prices, falling exports and worries of a global economic slowdown.

The BOJ polled over 9,000 companies from late February to the end of March.

The survey's closely watched index gauging large manufacturers' mood stands at plus 1. That's down 6 points from the previous survey in December.

A positive number indicates that more companies feel business conditions are good than those taking a negative view.

In addition to concerns about material costs and the global economy, sentiment was affected by weakening demand for semiconductors used in smartphones and PCs.

Meanwhile, large non-manufacturers remained considerably more upbeat. Their index is up one point to 20, the fourth consecutive quarter of improvement.

The easing of coronavirus restrictions and a recovery in inbound tourism lifted companies' mood.

In the quarter ahead, the reading for major manufacturers is forecast to improve by 2 points, as auto production is expected to recover while the rise in material costs could ease.

But the index for large non-manufacturers is expected to worsen by five points, weighed down by worries about labor shortages.

Higher material costs also remain a concern for the construction and real-estate industries.