The Reuters Tankan sentiment index for manufacturers in Japan edged down to +8 in May 2025 from an eight-month high of +9 in April.

This was indicative that Japanese manufacturers were slightly less confident in May.

Firms expect conditions to worsen over the next three months due to shifting US tariff policies, though optimism still outweighs pessimism.

The cautious mood reflects challenges after Japan’s economy shrank in Q1, with trade tensions posing further risks.

AloJapan.com