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31.03.202623:50:00UTC+00Japan’s Service-Sector Sentiment Edges Higher in Q1 2026 Tankan Survey

Business confidence among Japan’s large non-manufacturing companies improved slightly in the first quarter of 2026, according to the latest Tankan survey data released on 31 March 2026. The Tankan Large Non-Manufacturers Diffusion Index rose to 29 in Q1 2026, up from 28 in the fourth quarter of 2025.

The modest one-point increase suggests that sentiment in Japan’s service-oriented sectors—such as retail, transportation, and finance—continues to strengthen, albeit gradually. While the move is not dramatic, the uptick indicates that large non-manufacturing firms remain cautiously optimistic about business conditions heading into the rest of 2026. Investors and policymakers will be watching subsequent Tankan releases to see whether this improving trend in the services sector can be sustained and potentially broaden into stronger overall economic momentum.

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