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2026.09.3023:50:00UTC+00Japan’s Service-Sector Mood Softens as Tankan Large Non‑Manufacturers Index Slips in Q3

Business sentiment among Japan’s large service-sector companies weakened in the third quarter of 2026, according to the latest Tankan Large Non-Manufacturers Index. The indicator eased to 35 in the third quarter, down from 37 in the second quarter of 2026.

The data, updated on 30 September 2026, point to a modest cooling in confidence outside Japan’s manufacturing sector, which includes key areas such as retail, transport and other services. While the index remains in positive territory—indicating that optimists still outnumber pessimists—the two-point decline suggests large non-manufacturers are becoming slightly more cautious about current business conditions.

Investors and policymakers will be watching upcoming releases closely to assess whether this softening is temporary or the start of a broader downshift in Japan’s service-sector momentum in the second half of 2026.

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