Japan Business Confidence

Last Release

Jun 30, 2025

Actual

Units In

Points

Frequency

Quarterly

Next Release

Sep 30, 2025

Time to Release

2 Months 29 Days 23 Hours

Highest	Lowest	Average	Date Range	Source
53 Jun 1989	-58 Mar 2009	2.02 Points	1983-2025	Bank of Japan

In Japan, the quarterly Tankan Index of Sentiment at Large Manufacturers covers about 1,100 companies with capital over 1 billion Yen. The survey is done by mail or e-mail and asks participants to evaluate current trends and conditions in the business place and their respective industries as well as their expected business activities for the next quarter and year. The indicator is calculated by subtracting the percentage share of enterprises responding on the negative side from the share giving positive assessments. The index varies on a scale of -100 to 100 such that a value above zero indicates business optimism, a value below zero pessimism and 0 indicates neutrality.

Latest Updates

The Bank of Japan’s index for large manufacturers edged up to 13 in Q2 2025 from a one-year low of 12 in the previous period, beating market forecasts of 10, as the economy navigates through rising U.S. tariffs. Confidence improved among firms producing pulp & paper (29 vs 18 in Q2), chemicals (14 vs 13), petroleum and coal (9 vs 0), iron & steel (-3 vs -18), business-oriented machinery (22 vs 19), and non-ferrous metals (16 vs 15). At the same time, sentiment remained stable for producers of textiles (at 0), food & beverages (at 8), electrical machinery (at 11), and shipbuilding & heavy machinery (at 27). In contrast, confidence weakened for manufacturers of processed metals (-3 vs 3), general-purpose machinery (23 vs 27), production machinery (15 vs 17), and motor vehicles (8 vs 13). Meanwhile, large firms planned to increase capital expenditure by 11.5% in Q2, a sharp acceleration from a 3.5% growth in Q1 and marking the fastest expansion in 1-1/2 years.