Japan Manufacturers’ Mood Hits Over 4-Year High

2026-03-18 00:04 By Jam Kaimo Samonte 1 min. read

The Reuters Tankan index for Japanese manufacturers jumped to +18 in March 2026 from +13 in February, marking its strongest level since December 2021, as a near-term rebound in industrial momentum was supported by robust semiconductor-related demand and a pickup across key manufacturing sectors.

The improvement was broad-based, led by chemicals and petroleum-linked industries, where sentiment surged alongside stronger demand tied to the semiconductor cycle.

Transport machinery, a core pillar of Japan’s export economy, also showed resilience amid solid vehicle production and healthy order books.

Meanwhile, the steel and non-ferrous metals segment remained deeply negative due to weak demand linked to the auto sector.

Looking ahead, manufacturers expect sentiment to ease to +14 by June, reflecting rising uncertainty from the Middle East conflict, elevated input costs, and external demand risks.



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