{
  "id": 11117546,
  "title": "Tankan shows rising sentiment at big manufacturers for sixth straight quarter",
  "url": "https://urgent.news/2026/10/01/tankan-shows-rising-sentiment-at-big-manufacturers-for-sixth-straight",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T05:31:00.000Z",
  "source": {
    "name": "Japan Times",
    "slug": "japan-times",
    "url": "https://www.japantimes.co.jp/business/2026/10/01/companies/tankan-better-sentiment/"
  },
  "original_language": "en",
  "account": "Large Japanese manufacturers reported a surge in business sentiment for the sixth consecutive quarter, reaching the highest level in eight years according to the Bank of Japan's Tankan survey. The business sentiment index for these manufacturers rose to 24 in the July-September period, up from 22 in the previous quarter. While this indicates a positive trend, the sentiment for non-manufacturing companies declined for the first time in five quarters, falling to 35 from 37 in the same period.\n\nTakahide Kiuchi, an executive economist at Nomura Research Institute, suggested that the disparity between the two sectors could be attributed to the impact of rising oil prices. He noted that since large manufacturers have managed to pass on increased oil costs since spring, they have managed to secure profits. On the other hand, price increases pose a greater challenge for non-manufacturers. Kiuchi also pointed out that growing demand for artificial intelligence and semiconductors is believed to be boosting business sentiment among manufacturers.\n\nThe Tankan survey, released on Thursday, revealed that business confidence has remained strong not only for large manufacturers but also for smaller and midsize companies. The index for midsize companies increased to 23 from 17, while for smaller companies, it rose to 14 from 9. With over 99% of companies polled responding to the questionnaire, the data is considered of very high quality and an accurate reflection of the current business landscape. In total, 9,104 companies were surveyed between August 26 and September 30.\n\nThe Tankan survey measures business conditions by asking companies whether they perceive the conditions to be \"favorable,\" \"not so favorable,\" or \"unfavorable.\" A positive reading indicates that more companies answered \"favorable\" compared to those answering \"unfavorable.\" Despite mixed signals from the Bank of Japan (BOJ) regarding its policy rate, the central bank hiked its policy rate to 1.25% on September 18 from 1%, marking the highest level since 1995. Prior to the rate increase, expectations of a more hawkish stance from the BOJ had grown, but the bank's mixed signals ultimately prevented a further increase. The market forecasts an 82% chance of a rate hike in December, with a 22% probability of a rate increase during the BOJ's policy meeting on October 29 and 30.",
  "summary": "They have not been this optimistic about business conditions in eight years.",
  "key_points": [
    "Large Japanese manufacturers reported highest business sentiment in eight years",
    "Non-manufacturing companies' sentiment declined for first time in five quarters",
    "AI and semiconductor demand boosting manufacturers' business confidence"
  ],
  "editors_take": "Rising business sentiment among large manufacturers, driven by passing on higher oil costs and growing demand for tech, contrasts with declining confidence in non-manufacturing, highlighting sector disparities.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}