Japan Business Sentiment Rises to 3-Quarter High in Q3

2025-09-11 00:00 By Chusnul Chotimah 1 min. read

Japan’s Business Survey Index (BSI) for large manufacturing firms unexpectedly rose to 3.8% in the third quarter of 2025, up from -4.8% in the previous quarter — the lowest reading since Q1 2024.

The result easily beat market expectations for a decline to 3.3%, marking the highest level since Q4 2024 and the first return to positive territory in three quarters.

The improvement reflects a sharp rebound in exports, as firms front-loaded shipments to the US ahead of newly imposed 15% blanket tariffs.

Last week, US President Donald Trump signed an executive order to implement a trade deal with Japan, introducing 15% baseline tariffs on most Japanese goods, including automobiles.

The BSI, based on a survey of large Japanese manufacturers, serves as a key gauge of economic health in a country heavily reliant on industrial output.

Manufacturers remain optimistic about the months ahead, projecting a further rise to 3.9% in Q4, followed by a slight decline to 3.3% in Q1 2026.



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