Japan Manufacturers Sentiment Deteriorated for First Time in Four Quarters

By Megumi Fujikawa

TOKYO--Sentiment among large Japanese manufacturers worsened for the first time in four quarters during the three months to March, reflecting a sharp deterioration in mood among automakers.

The main index for sentiment among large manufacturers was +11, compared with +13 in December, according to the Bank of Japan's quarterly Tankan corporate survey released Monday. That compares with economists' forecast for +10.

The index represents the percentage of companies who said business conditions were favorable minus those who said conditions were unfavorable.

The sentiment among carmakers fell to 13 from December's 28. During the quarter, Toyota Motor's small-car unit, Daihatsu Motor, suspended some production and shipments amid safety-test irregularities.

Write to Megumi Fujikawa megumi.fujikawa@wsj.com