Japanese Manufacturers See Sixth Straight Quarter of Improved Sentiment

The Bank of Japan's Tankan survey released on Thursday showed that sentiment among Japan's largest manufacturers improved for the sixth consecutive quarter in the July-September period. This upward trend is attributed to robust demand driven by artificial intelligence investment.

The headline diffusion index for large manufacturers rose to +24, a 2-point increase from +22 in the previous June survey. This indicates that more firms view conditions as favorable than unfavorable.

However, the Tankan survey also revealed that large non-manufacturers saw their index slip to +35 from +37, marking the first deterioration in five quarters.