Business confidence among the country's largest manufacturers reached 24 in the September Tankan survey, an 8 year high, compared to 22 in June. While large non-manufacturing sentiment dipped to 35 from 37 and all-industry capital expenditure plans fell to 11.3% from 11.5%, small manufacturer optimism rose to 14 from 9. The production capacity index for major industrial firms declined to -2 in September from 0 in June.
Wednesday, October 21, 2026
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Japan’s Large Manufacturer Sentiment Hits 8 Year High of 24
Global Markets20 days ago
Inflation forecasts from Japanese firms have risen to 2.6% for the next three years and 2.5% for five years, surpassing the 2% target of the Bank of Japan. This outlook and general economic resilience amid the Middle East conflict and higher borrowing costs increase pressure on the central bank to continue tightening monetary policy. One BOJ official indicated that the bank may accelerate the pace of rate hikes if inflation continues to move above the target.
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