Sentiment among major Japanese firms remains negative

The economic impact of Russia's invasion of Ukraine has dimmed the mood at Japan's major companies.

The government's business-sentiment survey shows that the index is at minus 0.9, up 6.6 points, for April to June. It was the second-straight quarter for the reading to come in negative. That means a majority of respondents think business conditions have worsened.

The reading for automakers and parts suppliers was minus 25.4. The Ukraine conflict pushed up their procurement costs. The companies also struggled with parts shortages due to coronavirus restrictions in China.

Sentiment turned positive for the hospitality and service industries. Their reading jumped to 12.6. Customers have returned to hotels and restaurants after coronavirus infections in Japan stabilized somewhat.

The major companies are expecting business to improve in the coming quarter. The sentiment gauge is projected at a positive 6.3.

The Finance Ministry says it will continue keeping an eye on the effects of Russia's invasion, including higher prices of raw materials.