TOKYO, April 2 (Xinhua) -- Large Japanese manufacturers' business sentiment in March worsened form the previous quarter, the Bank of Japan (BOJ) said in report on Monday.

In the central bank's quarterly Tankan survey, the index reflecting confidence among large manufacturers stood at plus 24, dropping 2 points from the December survey and missing median market expectations of plus 25.

The index for large non-manufacturers, which includes the service sector, also dropped 2 points compared to three months ago to stand at 23, the survey showed.

The BOJ's quarterly Tankan survey is regarded by economists as Japan's most closely watched gauge of business sentiment.

The survey covered thousands of Japanese companies with a specified minimum amount of capital, although firms deemed sufficiently influential can be including in the poll.

The survey asked both qualitative and quantitative questions such as those about about the current trends and conditions in the business place and those in their respective industries.

It also asked about their expected business activities looking ahead and their outlook for the upcoming quarter and for the year.