Tokyo  - Japan's key Tankan index of manufacturer sentiment hit a record low in March, the Bank of Japan said Wednesday.

The survey of large firms dropped to minus 58 in March, the lowest number recorded in Tankan's 35-year history. The plummeting confidence points to lower spending and investment, job losses and a deepening recession.

A negative figure shows pessimists outnumber optimists.

The surveyed firms expect to pare back investment by 6.6 per cent for the next 12 months. (dpa)