Business confidence among Japan’s largest manufacturers strengthened in the second quarter of 2026, with the Bank of Japan’s Tankan Large Manufacturers Index rising to 22. The index was previously at 17 in the first quarter of 2026, underscoring an improvement in sentiment across the country’s key industrial sectors.
The latest reading, updated on 30 June 2026, signals that major Japanese manufacturers are more optimistic about current business conditions than earlier in the year. The five-point increase from the first quarter suggests a more supportive environment for production and investment decisions, and will likely be closely watched by policymakers and markets as a gauge of underlying momentum in Japan’s industrial economy.
