Big manufacturers39; business mood at 7 vs f39;cast 6
Big nonmanufacturers39; sentiment at 19 vs f39;cast 17
Mixed data highlights challenges in driving up wages

TOKYO, Dec 14 Reuters Japanese manufacturers39; mood soured in the final quarter of 2022 to its lowest in nearly two years, a central bank survey showed, as cost pressures and the prospect of slowing global demand clouded the outlook for the world39;s thirdlargest economy.

But servicesector sentiment improved for three straight quarters in the OctoberDecember period, the Bank of Japan39;s closely watched tankan survey showed on Wednesday, as the impact on consumption from the coronavirus pandemic faded.

The outcome illustrated the divergence between robust domestic demand, which is making a delayed recovery from the pandemic39;s scars, and the darkening outlook for exports on fears of global recession, analysts say.

It also highlighted the challenge policymakers face in prodding companies to raise wages and compensate households for the rising cost of living a factor the BOJ sees as crucial for inflation to sustainably hit its 2 goal.

Japan39;s economy isn39;t in bad shape, with firms maintaining their bullish spending plans. Companies will also raise wages next year, said Yoshiki Shinke, chief economist at Daiichi Life Research Institute.

But the key is the outlook for overseas economy, as domestic demand isn39;t strong enough to compensate for the hit from any big slump in global growth, he said….