Japanese business confidence was flat in the last quarter of the year, a central bank survey showed Monday, despite signs of a pickup in the world's number three economy.

The Bank of Japan's closely watched Tankan report showed the confidence index among major manufacturers was unchanged at plus 12 in December from the previous quarter.

The report is the most comprehensive indicator of how Japan Inc. is faring and marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable.