Japan’s large manufacturers returned to positive territory in the third quarter of 2026, as the Bank of Japan’s BSI Large Manufacturing Conditions index climbed to 7.6, up from -1.8 in the previous quarter. The move marks a notable shift in sentiment after conditions were in negative territory in the second quarter of 2026.
The improvement suggests that large manufacturers are experiencing a more favorable business environment and are more optimistic about current conditions than they were earlier in the year. The latest reading, updated on 10 September 2026, may be seen by markets as an encouraging sign for Japan’s industrial sector heading into the latter part of 2026.
