Tokyo - Optimism in Japan's industry is at its lowest point in five years, a quarterly survey by the country's central bank said Wednesday.

For the first time since 2003, the Bank of Japan's Tankan index, a a business sentiment survey of 10,000 companies, turned negative in the July-September quarter.

The index slipped from plus 5 in the previous quarter to minus 3, indicating that pessimists have the upper hand as the global downturn threatens Japan's export markets and the country's economy hovers on the brink of recession.

The Tankan index is calculated by subtracting the percentage of companies who regard business conditions as unfavourable from those that consider them positive. (dpa)