Japan Big Firms’ Biz Sentiment Remains Positive in Jan.-March

Jiji Press

15:29 JST, March 12, 2026

Tokyo, March 12 (Jiji Press)—Business sentiment among major Japanese companies in January-March was positive for the third straight quarter, a government survey showed Thursday.

The business survey index for companies with capital of ¥1 billion or more stood at plus 4.4, according to the joint survey by the Finance Ministry and the Cabinet Office.

Large manufactures’ sentiment was backed by growing demand for products related to labor saving, artificial intelligence and data centers. Progress in efforts to pass on higher costs to clients supported nonmanufacturers.

The index shows the proportion of companies seeing their business conditions improve compared with the previous quarter minus that of firms feeling the opposite. The survey, conducted as of Feb. 15, did not reflect the impact of U.S.-Israeli strikes on Iran.

Major manufacturers’ business survey index stood at plus 3.8. The index for production equipment makers was plus 21.7 amid strong demand for chipmaking devices. Sentiment among appliance makers was also bullish.

Major nonmanufacturers’ index stood at plus 4.6. The service industry successfully raised prices, while the construction sector benefited from increased data center construction.

The index for midsize companies was plus 0.2, and that for small businesses was minus 12.9.

In the employment index, major companies’ sense of labor shortages hit the highest level.

All companies’ ordinary profit grew 2.4 pct in fiscal 2025 from the previous year and is expected to fall 1 pct in fiscal 2026.

Capital investment climbed 3.9 pct in fiscal 2025 and is expected to grow 3.5 pct in fiscal 2026.