Key facts
- The Reuters Tankan manufacturers' index rose to plus-27 in November from plus-22, the highest since August 2021.
- Electronics sentiment jumped to plus-39 from plus-25, leading the improvement in manufacturing confidence.
- Non-manufacturers' sentiment rose to plus-35 from plus-23, the highest since June 2018.
- Services and others rose to plus-43 from plus-19; information and communications rose to plus-29 from plus-8.
- Manufacturers expect the index at plus-28 in February; non-manufacturers expect plus-29.
- Rising prices and higher interest rates weighed on both sectors, with some firms unable to pass on costs.
Japanese manufacturers' sentiment rose to its strongest level in more than five years in November, led by demand for semiconductors, according to the Reuters monthly Tankan poll published on November 10, 2026.
The Reuters Tankan sentiment index for manufacturers rose to plus-27 in November from plus-22 in October, the highest reading since August 2021. The poll is a leading indicator of the Bank of Japan's quarterly Tankan business survey. It was conducted from October 27 to November 6 and received responses from 214 of 508 firms. The indexes subtract the percentage of pessimistic responses from optimistic ones, so positive figures indicate net optimism.
The electronics sector led the improvement, with sentiment rising to plus-39 in November from plus-25. "Semiconductor demand, particularly for memory, is very strong," a manager at an electronics machinery company said. Sentiment in precision machinery, which includes some chip-related equipment makers, improved to plus-42 from plus-38. "Orders from both domestic and international remain robust," a manager at a precision machinery company said.
Another respondent at a machinery firm said product shipments for the semiconductor market had reached an "unprecedented level." Oil refinery and ceramics rose to plus-25 from plus-14, while chemicals improved to plus-33 from plus-27.
The non-manufacturers' index rose to plus-35 in November from plus-23, a level not seen since June 2018. Sentiment in information and communications rose to plus-29 from plus-8 on strong orders, and services and others rose to plus-43 from plus-19. One manager said "tight labour market conditions persist among companies, keeping demand for talent at a high level."
Looking three months ahead, manufacturers expect sentiment to edge up to plus-28 in February, while non-manufacturers see confidence easing to plus-29. Rising prices and higher interest rates weighed on both sectors, the survey found, with some firms struggling to pass on increased costs to customers.