Survey shows Japan's business sentiment improving for a 5th straight quarter

Survey shows Japan's business sentiment improving for a 5th straight quarter The Bank of Japan has reported its quarterly survey of business sentiment among major Japanese manufacturers rose to 22 in June from 17 in the previous quarter ByYURI KAGEYAMA AP business writer July 1, 2026, AM TOKYO -- Business sentiment among major Japanese manufacturers has improved for a fifth straight quarter, the Bank of Japan said in its quarterly “tankan” survey released Wednesday. The survey's so-called diffusion index rose to 22 from 17 in the previous quarter, the BOJ said. The index for large non-manufacturers, such as services, edged up to 37 from the last tankan 's 36. The survey is an indicator of companies foreseeing good conditions minus those feeling pessimistic. Higher fuel prices due to the Iran war have added to inflationary pressures in Japan, though crude oil prices have fallen since the U. S. and Iran agreed on an interim deal to end the war. Although a weak yen raises the value of exports’ earnings when converted into yen, a boon for Japan’s giant exporters, that positive is starting to be countered . Japan imports nearly all of its oil and gas, and the yen’s recent decline to near a 40-year low has added to those concerns given recent high oil prices. S. dollar was trading at about 162 yen on Wednesday. Last month the Bank of Japan raised its benchmark interest rate to 1%, a three-decade high, citing challenges stemming from a weak Japanese yen and higher prices. The central bank has been trying to normalize monetary policy lately after decades of keeping interest rates near or below zero.