Japan's Q2 Tankan Survey Beats Forecasts as Large Manufacturer Confidence Rises to 13.0

Japan's Tankan Survey Shows Stronger-Than-Expected Manufacturing Confidence in Q2

Japan’s large manufacturing index climbed to 13.0 in the second quarter (Q2) of 2025, rising from 12.0 in Q1, according to the Bank of Japan’s (BOJ) Tankan survey released Tuesday. The result surpassed market expectations of 10.0, signaling stronger-than-anticipated sentiment among Japanese industrial firms.

Highlights from the BOJ Tankan Survey (Q2 2025)

• Large Manufacturing Index:
  • Q2: 13.0
  • Q1: 12.0
  • Market Forecast: 10.0
• Manufacturing Outlook Index:
  • Q2: 12.0
  • Previous: 12.0
  • Forecast: 9.0

Implications for Japan’s Economy

The better-than-expected sentiment reflects resilience in Japan’s industrial base, despite global economic headwinds. Steady outlook figures suggest manufacturers remain cautiously optimistic about future demand and production.

This improvement may encourage the BOJ to maintain its current monetary policy, as business confidence plays a key role in Japan's inflation and investment dynamics.

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