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Macro EconomyMedium•10 November 2026•
1 min read

Japan Manufacturer Mood Hits 5-Year High on Chip Demand

Key Facts

1The Reuters Tankan manufacturers' index for Japan rose to +27 in November, its highest level since August 2021.
2Electronics sentiment jumped to +39 from +25, driven by booming semiconductor demand.
3The non-manufacturers index surged to +35, the strongest reading since June 2018.

The Reuters Tankan manufacturers' index for Japan rose to +27 in November, marking its highest level since August 2021. Reuters reported that electronics sentiment jumped to +39 from +25, driven by booming global demand for semiconductors. The non-manufacturers index also surged to +35, reaching its strongest reading since June 2018.

This surge in business confidence follows mixed economic data earlier in November 2026, including a Services PMI reading of 51.7 on November 5, 2026. Conversely, household spending data released on November 9, 2026, showed a 6.8% year-on-year decline, highlighting a divergence between corporate optimism and consumer activity.

Japan is scheduled to release its quarterly GDP growth rate data on November 15, 2026. This upcoming release will clarify how the strength in the manufacturing and semiconductor sectors is translating into broader economic expansion.