Japan Business Confidence

Last Release

Dec 31, 2025

Actual

Units In

Points

Frequency

Quarterly

Next Release

Mar 31, 2026

Time to Release

3 Months 14 Days 0 Hours

Highest	Lowest	Average	Date Range	Source
53 Jun 1989	-58 Mar 2009	2.17 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 sentiment index for large manufacturers edged up to 15 in Q4 2025 from 14 in Q3, improving for a third quarter and marking the highest print since Q4 2021, amid the yen’s sustained weakness and firm global demand, notably from the AI sector. The latest reading matched market estimates, with confidence remaining upbeat among firms producing lumber & wood (0 vs -8 in Q3), pulp (34 vs 26), petroleum (33 vs 0), iron & steel (-11 vs -14), food & drinks (9 vs 6), chemicals (22 vs 15), electrical machinery (17 vs 16), shipbuilding (41 vs 36), and processed metals (8 vs 0). At the same time, sentiment stayed stable for textiles (at 4), general-purpose machinery (at 27), and production machinery (at 17), but fell for motor vehicles (9 vs 10), and business-oriented machinery (13 vs 22). Large firms planned to lift capital expenditure by 12.6% in Q4, after a 12.5% rise in Q3, topping forecasts of 12%. This was the strongest rise in investment intentions in eight quarters.