Japan Manufacturers' Mood Highest Since 2021

2026-09-08 23:09 By Chusnul Chotimah 1 min. read

The Reuters Tankan index for Japanese manufacturers increased for the second straight month to +21 in September 2026 from +18 in the previous month, marking the highest reading since December 2021, supported by solid semiconductor and data centre demand.

Semiconductor-related industries drove the manufacturing index higher, with the sub-index for electronics jumping to +39 from +24 on stronger data center and semiconductor demand, reflecting AI-related spending flowing to Japanese suppliers of chips, testing equipment, and related components.

Meanwhile, precision machinery remained unchanged at +29, while metal products inched up to +26 from +25.

On the other hand, textiles and paper surged to +13 from zero, while steel and nonferrous metals remained at -13.

Meanwhile, non-manufacturers' sentiment increased to +29 from +28, buoyed by strong domestic consumption.

Looking three months ahead, manufacturers expect sentiment to improve to +27, while non-manufacturers remained at +27.



News Stream
Japan Manufacturers' Mood Highest Since 2021
The Reuters Tankan index for Japanese manufacturers increased for the second straight month to +21 in September 2026 from +18 in the previous month, marking the highest reading since December 2021, supported by solid semiconductor and data centre demand. Semiconductor-related industries drove the manufacturing index higher, with the sub-index for electronics jumping to +39 from +24 on stronger data center and semiconductor demand, reflecting AI-related spending flowing to Japanese suppliers of chips, testing equipment, and related components. Meanwhile, precision machinery remained unchanged at +29, while metal products inched up to +26 from +25. On the other hand, textiles and paper surged to +13 from zero, while steel and nonferrous metals remained at -13. Meanwhile, non-manufacturers' sentiment increased to +29 from +28, buoyed by strong domestic consumption. Looking three months ahead, manufacturers expect sentiment to improve to +27, while non-manufacturers remained at +27.
2026-09-08
Japan Manufacturers' Mood Highest in 5 Months
The Reuters Tankan index for Japanese manufacturers increased to +18 in August 2026 from +13 in the previous month, marking the highest reading since March, supported by solid semiconductor demand. Semiconductor-related industries drove the manufacturing index higher, with the sub-index for chemicals surging to +33 from plus 23. Meanwhile, the metal and machinery industry index strengthened to +25 from +12. However, transport equipment remained flat at zero, reflecting mixed conditions in the automotive sector. Meanwhile, non-manufacturers' sentiment advanced to +28 from +25, buoyed by strong domestic consumption. Looking ahead, manufacturers expect sentiment to be stable, with the index forecast to ease to +16 in November, suggesting some caution about the business outlook. The non-manufacturers' index is expected to stay at +28.
2026-08-11
Japan Manufacturers' Mood Steady in July
The Reuters Tankan index for Japanese manufacturers stood at +13 in July 2026, unchanged from the previous month after rising over the previous two months, supported by solid semiconductor demand. Manufacturers reported a recovery in the semiconductor market, including memory-related demand, alongside rapidly expanding orders for products used in chip applications and AI servers. "Order volumes and values are at levels we've never seen before, and we're concerned about production capacity," a manager at a precision machinery maker said. Meanwhile, non-manufacturers' sentiment fell to +25 from +32 as the Middle East conflict, a weak yen, and rising interest rates pushed up costs. Looking ahead, manufacturers expect sentiment to edge up to +14 in October, while non-manufacturers see their index holding at +25 as businesses continue to assess the fallout from geopolitical risks and supply chain challenges.
2026-07-14