Business sentiment among Japan’s large non-manufacturers improved slightly in the second quarter of 2026, according to the latest Tankan survey, suggesting resilient domestic demand despite a challenging global backdrop. The Tankan Large Non-Manufacturers Index rose to 37 in Q2 2026, up from 36 in the first quarter of 2026.
The modest one-point increase underlines steady confidence among major service-sector firms, including retailers, transport operators, and other non-manufacturing businesses that are closely tied to household spending and tourism. While the gain is incremental, the move higher indicates that corporate managers in the services sector still see conditions as favorable overall.
The data, updated on 30 June 2026, will be closely watched by investors and policymakers for clues on the sustainability of Japan’s recovery, particularly as the services side of the economy continues to play a key role in offsetting lingering uncertainties in manufacturing and external demand.
