TOKYO, JAPAN - JAPANESE business confidence fell to the lowest level in five years in September as Asia's largest economy skirts recession, a key central bank survey showed on Wednesday.

The confidence index for major manufacturers tumbled to minus three last month from five in June, slipping into negative territory for the first time since June 2003, according to the Bank of Japan's quarterly Tankan survey.

The index measures the percentage of firms that think business conditions are good minus those that think they are bad.

Market forecasts had been for a figure of minus one. -- AFP