Economic Buzz: Japan business confidence hits highest level since 2018

Japan?s large manufacturers? sentiment index rose to 24 in Q3 2026 from 22 in Q2, marking its sixth consecutive quarterly improvement and the highest reading since Q1 2018, though it missed expectations of 25. Strong global demand, particularly from AI-related investment, supported confidence, while higher costs and energy pressures remained a drag. Large firms expect capital expenditure to rise 11.3%.

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