Japan: July Reuters Tankan: Manufacturers’ DI Flat, Non-manufacturers’ DI Worsens

Research evidence excerpt

Japan: July Reuters Tankan: Manufacturers’ DI Flat, Non-manufacturers’ DI Worsens

Economics Research

15 July 2026 | 9:27AM JST

Japan: July Reuters Tankan: Manufacturers’ DI Flat, Non-manufacturers’

DI Worsens

BOTTOM LINE: The manufacturers’ DI in the July Reuters Tankan was flat from June Yuriko Tanaka

+81(3)4587-9964 |

at +13. While solid demand related to semiconductors was noted, multiple yuriko.tanaka@gs.com

Goldman Sachs Japan Co., Ltd.

uncertainty factors, such as raw material costs and the situation in the Middle East,

were cited as reasons for deterioration. The non-manufacturers’ DI worsened by -7

points from June to +25, returning to the levels of February and March, immediately

following the worsening of the Middle East situation.

KEY NUMBERS:

July Reuters Tankan (based on 400 companies; conducted July 1 - 10)

n Manufacturers DI: July: +13, June: +13, Oct outlook: +14 (previous outlook DI:

+13)

n Non-manufacturers DI: July: +25, June: +32, Oct outlook: +25 (previous outlook

DI: +19)

MAIN POINTS:

Manufacturers’ DI Flat

The manufacturers’ DI in the July Reuters Tankan was flat from June at +13. As of the

previous survey in June, the DI level had already returned to the same level as in

February, before the Middle East disruption. The survey was conducted from July 1

to 10.

By sector, DIs worsened (vs. June) in 3 of 9 sectors, improved in 4 sectors, and were

flat in 2 sectors. The DIs for oil refinery & ceramics (-14 points vs. June), metal

products & machinery (-14 points), and transport equipment (-13 points) declined.

For transport equipment, declining sales to the Middle East and concerns about

securing raw materials were cited as reasons for the deterioration. On the other

hand, DIs improved for electric machinery (+14 points vs. June), textiles & paper