In an unexpected development, the Reuters Tankan Index, a key indicator of business sentiment in Japan, has plunged from 17 in November to 10 in December 2025. This data, updated on December 9th, suggests a significant shift in the economic outlook among Japanese firms.
The Reuters Tankan Index is widely regarded as a barometer for the health of Japan's manufacturing and non-manufacturing sectors. A drop from 17 to 10 indicates a strong decline in optimism, reflecting concerns about potential challenges that could affect the economy as the new year approaches.
This downturn in sentiment could have widespread implications for various sectors of Japan's economy, as companies may become more hesitant to make new investments or hire new personnel. The latest figures underscore the importance of closely monitoring economic indicators and reacting to shifts in business sentiment that could impact growth and recovery efforts in 2026.
