By Satoshi Sugiyama
TOKYO, Sept 9 (Reuters) – Business confidence among big Japanese manufacturers climbed in September to its highest level since December 2021, buoyed by robust semiconductor and data-centre-related demand, a Reuters monthly poll showed on Wednesday.
The Reuters Tankan sentiment index for manufacturers rose to plus-21 from plus-18 in August, extending a steady recovery from plus-7 in April. Non-manufacturers’ sentiment edged up to plus-29 from plus-28, staying within the range that has prevailed through 2025 and this year.
The poll, a leading indicator of the Bank of Japan’s quarterly Tankan business survey, was conducted from August 26 to September 4 and received responses from 224 out of 510 firms. The indexes are calculated by subtracting the percentage of pessimistic responses from optimistic ones, with positive figures indicating net optimism.
The pick-up in manufacturing was driven overwhelmingly by the electronics sector, whose sub-index surged to plus-39 from plus-24 for the previous month.
“Demand for the data-centre-related market is extremely strong,” a manager at an electronics company said, reflecting a wave of AI-related capital spending flowing through to Japanese suppliers of chips, testing equipment and related components.
Precision machinery held firm at plus-29 and metal products edged up to plus-26 from plus-25. Textiles/paper-pulp swung to plus-13 from zero. On the other hand, steel/nonferrous metal stayed at minus-13.
In the non-manufacturing sector, real-estate/construction rose to plus-37 from plus-32 and transport/utilities climbed to plus-33 from plus-25. Information/communications slipped to plus-21 from plus-33, while retailers rebounded to plus-18 from plus-9.
“We have been able to keep raising rents,” a manager at a real-estate company said, pointing to continued pricing power in the property market despite concerns over higher interest rates.
Looking three months ahead, manufacturers expect sentiment to strengthen further to plus-27, while non-manufacturers see their index steady at plus-27. Respondents flagged Middle East tensions, raw-material costs and softer domestic consumption as key downside risks.
(Reporting by Satoshi Sugiyama; Editing by Thomas Derpinghaus)
