Business sentiment among large Japanese manufacturers improved in the three months leading up to March, according to a survey by the Bank of Japan (BOJ). However, firms expect conditions to worsen due to rising fuel costs and supply disruptions from the Iran war. The BOJ's "tankan" survey showed that big manufacturers' business confidence stood at +17 in March, up from +16 in December, and an index for large non-manufacturers stood at -36 in March. This is a sign that economic uncertainty from the Middle East conflict has not yet negatively impacted morale. The Bank ofJapan is considering raising borrowing costs to meet inflationary pressures.