Japan’s services sector sentiment index rose to 43.6 in May 2026 from 40.8 in the previous month, reaching its highest level since February and signaling an improvement in business confidence. The gain was driven mainly by stronger household-related activity, particularly in the food and beverage sector, as consumer demand remained relatively resilient. Corporate sentiment also improved, supported largely by strength in manufacturing-related activity, while labor market conditions continued to firm, contributing to the overall rise in confidence. Looking ahead, the economic outlook index, which gauges sentiment for the coming months, climbed to 43.8 from 40.8 in April, marking its highest reading in three months. The improvement suggests businesses expect conditions to stabilize despite lingering challenges from the Middle East conflict. source: Cabinet Office, Japan

Economy Watchers Survey in Japan increased to 43.60 points in May from 40.80 points in April of 2026. Economy Watchers Survey in Japan averaged 45.12 points from 2001 until 2026, reaching an all time high of 58.30 points in December of 2021 and a record low of 8.30 points in April of 2020. This page provides - Japan Economy Watchers Survey - actual values, historical data, forecast, chart, statistics, economic calendar and news. Japan Economy Watchers Survey - data, historical chart, forecasts and calendar of releases - was last updated on June of 2026.

Economy Watchers Survey in Japan increased to 43.60 points in May from 40.80 points in April of 2026. Economy Watchers Survey in Japan is expected to be 45.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Japan Economy Watchers Survey is projected to trend around 52.50 points in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-05-13 05:00 AM
Eco Watchers Survey Current
Apr 40.8 42.2 41.6 40
2026-06-08 05:00 AM
Eco Watchers Survey Current
May 43.6 40.8 41.3
2026-07-08 05:00 AM
Eco Watchers Survey Current
Jun 43.6



Components Last Previous Unit Reference
Eco Watchers Survey Outlook 40.70 39.40 points May 2026

Related Last Previous Unit Reference
BSI Large Manufacturing -1.80 3.80 percent Jun 2026
Changes in Inventories -1847.00 -1482.20 JPY Billion Mar 2026
Coincident Index 118.10 116.80 points Apr 2026
Eco Watchers Survey Current 43.60 40.80 points May 2026
Leading Economic Index 116.10 115.40 Points Apr 2026
Machinery Orders MoM 8.70 -9.40 percent Apr 2026
New Orders 1248.68 1177.64 JPY Billion Apr 2026


Japan Economy Watchers Survey
The Economy Watchers Current Index measures the current mood of businesses that directly service consumers, such as barbers, taxi drivers, and waiters. The survey covers eleven regions across the country including Hokkaido, Tohoku, Northern Kanto, Southern Kanto, Tokai, Hokuriku, Kinki, Chugoku, Shikoku, Kyushu, and Okinawa. There were 2,050 people selected among those engaged in jobs in industries. This enabled them to observe any developments that accurately reflect economic activities such as household activity, corporate activity, and employment. A reading above 50.0 indicates optimism; below indicates pessimism.
Actual Previous Highest Lowest Dates Unit Frequency
43.60 40.80 58.30 8.30 2001 - 2026 points Monthly
SA

News Stream
Japan Services Sentiment Rises to 3-Month Peak
Japan’s services sector sentiment index rose to 43.6 in May 2026 from 40.8 in the previous month, reaching its highest level since February and signaling an improvement in business confidence. The gain was driven mainly by stronger household-related activity, particularly in the food and beverage sector, as consumer demand remained relatively resilient. Corporate sentiment also improved, supported largely by strength in manufacturing-related activity, while labor market conditions continued to firm, contributing to the overall rise in confidence. Looking ahead, the economic outlook index, which gauges sentiment for the coming months, climbed to 43.8 from 40.8 in April, marking its highest reading in three months. The improvement suggests businesses expect conditions to stabilize despite lingering challenges from the Middle East conflict.
2026-06-08
Japan Services Sentiment Drops to Over 4-Year Low
Japan’s services sector sentiment index fell to 40.8 in April 2026 from 42.2 in the prior month, missing market expectations of 41.6 and marking the lowest reading since February 2022. It was a second straight month of decline, highlighting a sluggish domestic recovery amid rising uncertainty linked to tensions in the Middle East. Household-related indicators weakened notably, suggesting softer spending conditions as consumers turned more cautious amid higher living costs and external risks. The corporate activity index also dropped, pressured mainly by weakness in the non-manufacturing sector, while employment conditions deteriorated further, signaling slower hiring momentum among service-sector firms. Meanwhile, the economic outlook index, which measures sentiment for the months ahead, edged up to 39.4 from March’s more than five-month low of 38.7, indicating some expectations that conditions could stabilize despite persistent uncertainty.
2026-05-13
Japan Services Sentiment Slips to 4-Year Low
Japan’s services sector index fell sharply to 42.2 in March 2026 from 48.9 in the prior month, missing market expectations of 48.0 and marking the lowest level since February 2022. The steep drop pointed to weakening activity, particularly in household-related segments such as food and beverage services, where demand softened notably. The corporate trend index also declined, largely weighed down by the non-manufacturing sector, while employment conditions deteriorated, signaling reduced hiring momentum. Meanwhile, the economic outlook index plunged to 38.7 from 50.0, marking the lowest reading since December 2020 and underscoring growing pessimism about the recovery path. The deterioration in sentiment was exacerbated by external uncertainties, including tensions in the Middle East, which have added downside risks and further clouded the outlook for Japan’s service-driven recovery.
2026-04-08