FX.co ★ Japan’s Small Non-Manufacturers Sentiment Holds Steady in Q2 Tankan Survey

Business sentiment among Japan’s small non-manufacturing firms remained unchanged in the second quarter of 2026, according to the latest Tankan survey data released on 30 June 2026. The diffusion index for this segment held at 8, matching the reading recorded in the first quarter of 2026.

The flat reading suggests that small service-sector and other non-manufacturing businesses have seen no significant shift in operating conditions over the spring quarter. While the positive level of 8 indicates that optimists still outnumber pessimists, the lack of further improvement may signal a cautious outlook among smaller firms amid ongoing economic uncertainties.

With sentiment steady rather than strengthening, markets and policymakers may look to upcoming data for clearer signals on whether domestic demand and services activity can provide more momentum to Japan’s broader economic recovery in the second half of 2026.