2026.03.3123:50:00UTC+00Japan’s Service-Sector Sentiment Edges Higher as Tankan Non-Manufacturers Index Rises to 36

Business sentiment in Japan’s service sector strengthened in the first quarter of 2026, with the Tankan Large Non-Manufacturers Index rising to 36 from 34 in the previous quarter. The updated data, released on 31 March 2026, marks a continued improvement from the fourth quarter of 2025.

The two-point increase suggests that large non-manufacturing companies — including retailers, transport operators, financial firms and other service providers — are reporting better operating conditions compared with the end of last year. While the gain is moderate, it indicates resilience in domestic demand and a cautiously improving business environment in Japan’s service economy.

Investors and policy watchers closely track this index as a gauge of corporate confidence outside the manufacturing sector, which is increasingly important to Japan’s growth profile. The latest reading for the first quarter of 2026 will likely feed into expectations for future corporate investment, hiring plans and the broader economic outlook.