BOJ Tankan Survey Paints Mixed Picture of Japan's Economy

The Bank of Japan's tankan survey revealed a mixed picture of the Japanese economy. Manufacturers' confidence hit an eight-year high, but non-manufacturers' mood soured.

The survey showed that big manufacturers' business sentiment reached +24 in September from +22 in June, the highest since March 2018. This was driven by robust chip and AI-related demand, as well as improving profit margins as they passed on rising raw material costs.

However, big non-manufacturers' sentiment slid to +35 from +37 in June, the first decline in five quarters. Service-sector firms saw rising raw material and labour costs hit profit, and suffered falling sales as consumers shunned price hikes.