Business sentiment among small non-manufacturing firms in Japan improved slightly in the first quarter of 2026, according to the latest Tankan survey released on 31 March 2026. The Tankan Small Non-Manufacturing Index rose to 16 in Q1 2026, up from 15 in the fourth quarter of 2025.
The uptick suggests that smaller service-sector businesses are experiencing a modest strengthening in conditions, even if the pace of improvement remains gradual. While the one-point gain does not signal a major shift in momentum, it points to continued resilience in Japan’s domestic-oriented industries as they navigate the start of 2026. Investors and policymakers will be watching upcoming quarters to see whether this incremental improvement can be sustained or broadened across the broader small-business landscape.\/body
