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The Japan Times
Japan’s manufacturer mood improves to highest level since 2018
Japan's large manufacturers reported a confidence index rise to 22 in June, the highest since 2018, alongside increased inflation expectations. This signals robust corporate health, which is likely to influence the Bank of Japan's monetary policy, supporting further interest rate hikes. The improved sentiment spans various sectors, including textiles and production machinery, amidst ongoing global economic uncertainties.
MonitorConfidence: MediumShort term horizon
Published 1 Jul 2026, 02:45 UTC2 min read
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Summary
TL;DR
- Manufacturers' confidence index rises to 22 from 17 in June.
- Inflation expectations project annual rates at 2.6% over five years.
- Corporate sentiment improves across textiles, metals, and machinery sectors.
- The weak yen is a confidence factor for exporters.
- Record high of 2,566 expected price increases by Japan's food and beverage firms.
Interesting facts
- A positive reading indicates more firms view conditions as favorable.
- The sentiment index for non-manufacturers also rose to 37, the strongest level since 1991.
- This survey reflects economic resilience despite geopolitical tensions.