14.01.202600:12:15UTC+00Japan Manufacturers’ Mood Hits 6-Month Low

The Reuters Tankan index for Japanese manufacturers experienced a decline to +7 in January 2026 from +10 in December, reaching its lowest point in six months. This decline is primarily attributed to reduced demand from major global economies, which has adversely affected industries reliant on materials. Notably, the oil and ceramics sectors faced significant downturns, with sentiment plummeting to zero, while the steel sector fell further into negative territory, and confidence in chemicals also diminished. Companies have highlighted sluggish conditions in essential export markets, with a steelmaker specifically noting decreased Chinese demand for automotive-related products. Additionally, there are concerns about softer consumer spending in the United States and China, compounded by the impact of tariffs on exports. Conversely, sentiment in the automotive and electronic machinery sectors experienced only a slight dip, suggesting that certain segments of Japan's industrial landscape remain more robust compared to those that are heavily influenced by global economic fluctuations. Looking ahead, manufacturers anticipate that confidence will rebound to +10 by April.