Japan Manufacturer's Mood Slightly Improves

2026-05-20 00:10 By Kyrie Dichosa 1 min. read

The Reuters Tankan index for Japanese manufacturers edged up to 8.0 in May 2026 from 7.0 in April, as commodity-related industries recovered from the sharp deterioration caused by the Iran war.

Improvements were seen in chemicals, steel, and nonferrous metals, supported by front-loaded demand and a rebound in materials sectors.

However, the recovery in overall factory sentiment remained limited, as confidence among transport machinery firms, including automakers and suppliers, weakened further amid supply constraints linked to disruptions in the Strait of Hormuz.

Food processors and textile-related industries also remained deeply pessimistic due to rising raw material costs and the weak yen.

Meanwhile, non-manufacturers’ sentiment fell to 29.0 from 31.0.

Both manufacturing and services firms expect conditions to weaken further by August amid ongoing concerns over the Iran war, supply disruptions, and elevated energy costs.



News Stream
Japan Manufacturer's Mood Slightly Improves
The Reuters Tankan index for Japanese manufacturers edged up to 8.0 in May 2026 from 7.0 in April, as commodity-related industries recovered from the sharp deterioration caused by the Iran war. Improvements were seen in chemicals, steel, and nonferrous metals, supported by front-loaded demand and a rebound in materials sectors. However, the recovery in overall factory sentiment remained limited, as confidence among transport machinery firms, including automakers and suppliers, weakened further amid supply constraints linked to disruptions in the Strait of Hormuz. Food processors and textile-related industries also remained deeply pessimistic due to rising raw material costs and the weak yen. Meanwhile, non-manufacturers’ sentiment fell to 29.0 from 31.0. Both manufacturing and services firms expect conditions to weaken further by August amid ongoing concerns over the Iran war, supply disruptions, and elevated energy costs.
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