Large manufacturing business sentiment reportedly fell to 5 in Q1 from 10 the previous quarter, marking the first time the series has deteriorated since the end of 1998, according to the Tankan survey by the Bank of Japan. These firms also expect conditions to worsen in the months ahead. Sentiment among other firms was worse. The survey also found that big companies are planning to cut their spending on plant and equipment by 4.7% in FY2001. Meanwhile, the diffusion index measuring supply-demand conditions fell to -32 from -21, pointing to more firms weighed down by excessive inventories, capacity and employees.