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30.09.202623:50:00UTC+00Japan’s Small Service-Sector Sentiment Climbs as Tankan Index Rises to 10 in Q3

Business sentiment among Japan’s small non-manufacturing firms improved in the third quarter of 2026, with the Tankan Small Non-Manufacturers Diffusion Index rising to 10 from 8 in the previous quarter. The data, updated on 30 September 2026, marks a continued strengthening in confidence across the country’s smaller service-oriented businesses.

The move from 8 in the second quarter to 10 in the third quarter suggests a further tilt toward optimism among small firms in areas such as retail, hospitality, and other service industries. A positive diffusion index reading indicates that more firms view business conditions as favorable rather than unfavorable.

While no additional details were released alongside the headline figure, the Q3 reading underscores a modest but ongoing improvement in the operating environment for Japan’s smaller non-manufacturing enterprises as of late 2026.

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