Japan Big Manufacturers More Optimistic Despite Headwinds

By Megumi Fujikawa

TOKYO--Large Japanese manufacturers became more optimistic about business conditions in the third quarter as concerns over energy shortages receded.

The index measuring sentiment among big manufacturers stood at +24, up from +22 in June, according to a Bank of Japan survey released Thursday. That closely matched the median forecast of +25 in a poll of economists by data provider Quick.

The gauge, widely viewed as a leading indicator of Japanese corporate health, represents the percentage of firms reporting favorable business conditions minus those reporting unfavorable conditions.

That marked the highest reading since March 2018. The survey is closely watched for clues regarding the timing of the central bank's next interest-rate hike.

After raising its policy rate to 1.25% in September, BOJ policymakers are monitoring how headwinds, including Middle East uncertainty and a weak yen, are affecting the economy and price trends.

The data also showed that large firms plan to increase capital expenditure by 11.3% in the current fiscal year ending March, compared with an 11.5% rise planned in the June survey.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

September 30, 2026 20:36 ET (00:36 GMT)