Mount Fuji, Japan

Japan Business Confidence Q2 2022

Japan: Business sentiment remains positive but dips in Q2

Business sentiment among large manufacturers—according to the Bank of Japan’s closely watched Tankan survey—came in at plus 9 in Q2, down from plus 14 in Q1. In contrast, confidence among large non-manufacturing firms rose to 13 in Q2 from 9 in Q1. As such, the sentiment values remained above the zero-threshold separating pessimism from optimism regarding current business conditions.

Analysts at Nomura commented on the print:

“The survey results highlight the Japanese economy’s vulnerability to rising prices. […] Japan’s economy thus has now entered a crucial phase in which the government will need to implement measures that strengthen the economy’s resistance to inflation. However, rather than ad-hoc measures to control rising prices, the government should focus on creating an environment supportive of future wage growth. It is becoming increasingly important that the BOJ be more concerned about the yen’s continued depreciation and work with the government to curtail rising prices and avoid a further strengthening of individuals’ and companies’ expectations of rising inflation over the medium to long term.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest