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The protracted European crisis sapped a recovery earlier in the year of its oomph. Then, a late summer resurgence in tensions with China over disputed islands in the East China Sea compounded the drag on exports. The Bank of Japan survey showed manufacturers anticipate sentiment will remain negative in coming months, with the index forecast at minus 10. The outlook among auto manufacturers, whose sales in China were battered by a spate of violent anti-Japanese protests, plummeted to minus 9 from positive 19. Non-manufacturers also predicted sentiment would worsen slightly, to plus 4 from the current plus 5. The outlook among smaller manufacturers was significantly more dismal than for larger ones, at minus 18. The Bank of Japan surveyed 10,654 companies between mid-November and mid-December. About 99 percent responded.
[Associated
Press;
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