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10.09.202623:57:15UTC+00Japan Business Sentiment Highest Since 2021

Japan’s Business Survey Index (BSI) for large manufacturers climbed to 7.6% in the third quarter of 2026, up from -1.8% in Q2 and significantly above market expectations of 2.5%. This marked the sharpest improvement since the fourth quarter of 2021, supported by government measures to stimulate GDP growth and an increase in public spending. Looking ahead, business sentiment in the manufacturing sector is projected to remain in expansionary territory, though at a more moderate pace, with the BSI forecast at 5.8% in Q4 and 4.9% in Q1 2027. As a survey-based measure of conditions among major manufacturers, the index remains a key indicator for an economy in which industrial production plays a pivotal role.

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