Japanese Manufacturers Reach Highest Confidence Level Since 2018

Confidence among Japan's largest manufacturers has reached its highest level in over eight years, according to the Bank of Japan's quarterly Tankan business survey.

The sentiment index climbed to 24 in September from 22, marking a sixth consecutive quarter of improvement. Economists had forecasted a rise to 25, but the actual figure fell short of that prediction.

The survey also showed that large non-manufacturers saw their gauge edge down to 35 from 37. A positive reading indicates that more firms view conditions as 'favorable' than 'unfavorable.'

The latest Tankan data points to continued resilience among Japanese companies, with robust global AI demand and rising real wages supporting demand for services.