The level of confidence of Japanese companies in the processing industry to the country's economy dropped in the second quarter to its lowest level since the third quarter of 2016. According to the Bank of Japan, the Japanese Tankan index was 7 points, down from 12 points recorded in January-June. According to economists, it was not expected to fall so sharply - only to 9 points. The share of survey participants who do not consider the business environment favorable has exceeded the percentage of those who think otherwise. The decline in the index was caused by concerns about the possible negative impact on the Japanese economy of the consequences of the intensified trade dispute between the United States and China. The indicator determining the expectations of large companies for the next 3 months was at the level of 7 points, having dropped from 8 points. According to the respondents, their profit in this fiscal year will decrease by 8.1%. Despite this, the companies intend to increase capital investment by 7.4% over the year.