Japan Manufacturers’ Mood Improves in Feb

2026-02-17 23:20 By Jam Kaimo Samonte 1 min. read

The Reuters Tankan index for Japanese manufacturers rose to +13 in February 2026 from +7 in January, marking the first improvement in three months, driven by firmer machinery orders and a weaker yen.

Machinery producers recorded the sharpest gain, with their sub-index climbing to +15 from 0.

One manager cited “a certain level of visibility for orders, sales, and profits,” while another noted that confidence was underpinned by the yen’s weak yet stable trajectory.

A softer currency typically supports exporters’ earnings when overseas profits are repatriated.

In contrast, sentiment in the transport machinery sector, which includes automakers and parts suppliers, deteriorated, with the index easing to +33 from +40.

Respondents pointed to subdued domestic auto sales and tighter rare-earth export controls in China as key headwinds.

Looking ahead, manufacturers expect overall sentiment to moderate to +10 over the next three months, suggesting caution despite the recent improvement.



News Stream
Japan Manufacturers’ Mood Improves in Feb
The Reuters Tankan index for Japanese manufacturers rose to +13 in February 2026 from +7 in January, marking the first improvement in three months, driven by firmer machinery orders and a weaker yen. Machinery producers recorded the sharpest gain, with their sub-index climbing to +15 from 0. One manager cited “a certain level of visibility for orders, sales, and profits,” while another noted that confidence was underpinned by the yen’s weak yet stable trajectory. A softer currency typically supports exporters’ earnings when overseas profits are repatriated. In contrast, sentiment in the transport machinery sector, which includes automakers and parts suppliers, deteriorated, with the index easing to +33 from +40. Respondents pointed to subdued domestic auto sales and tighter rare-earth export controls in China as key headwinds. Looking ahead, manufacturers expect overall sentiment to moderate to +10 over the next three months, suggesting caution despite the recent improvement.
2026-02-17
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2025-12-10