Japan Business Confidence
Japan's business confidence rose to 14 points in Q3 2025, reaching its highest level in three quarters. This is an increase from 13 points in Q2 2025. The improvement is attributed to a trade deal between Japan and the United States which reduced concerns over US tariffs. This clarity allows business managers to plan more effectively and the economy is overcoming trade tensions. Large Japanese enterprises plan a 12.5% increase in capital expenditure for the fiscal year ending March 2026. Japan's record low business confidence was -34 points in Q2 2020 and record high was 26 points in Q4 2017.
Quarterly Historical Data (2015-2025)
(in points)Recent Events
Japan Business Confidence : Definition
Japan business confidence gauges Japanese firms views on economic conditions. The Bank of Japan calculates it using a survey diffusion index. This index equals the percentage of positive responses minus the percentage of negative responses. A positive value shows greater optimism.