Business sentiment among Japan’s small non-manufacturing firms edged down in the second quarter of 2026, according to the latest Tankan survey released on 30 June 2026.
The Tankan Small Non-Manufacturing Index slipped to 15 in Q2 2026, from 16 in the first quarter of 2026. While the decline is modest, it points to a slight weakening in confidence among smaller service-sector businesses compared with the start of the year.
Despite the one-point drop, the index remains in positive territory, indicating that overall sentiment among small non-manufacturers is still broadly optimistic, though less robust than in the previous quarter.
