TOKYO, Aug 12 (Reuters) - Japanese business confidence improved in August as manufacturers benefited from robust semiconductor demand while non-manufacturers were supported by strong domestic consumption, the latest Reuters Tankan survey showed.
The monthly poll, a leading indicator of the Bank of Japan's quarterly Tankan business survey, showed the manufacturers' sentiment index rose to plus 18 in August from plus 13 in July, marking the highest level since March 2026.
Non-manufacturers' confidence
climbed to plus 28 from plus 25.
The August survey, conducted from July 29 to August 6, received responses from 219 out of 510 firms polled. The indexes are calculated by subtracting the percentage of pessimistic responses from optimistic ones, with positive figures indicating net optimism.
Semiconductor-related industries drove the manufacturing index higher, with the sub-index for chemicals jumping to plus 33 from plus 23. The metal and machinery industry index improved to plus 25 from plus 12.
"Strong demand for semiconductor-related products is driving robust order intake," a machinery maker manager said in the survey.
Another respondent from the precision machinery sector said orders had improved markedly since April both in Japan and overseas. "We are receiving twice the normal volume of orders, an unprecedented situation," the manager said.
However, transport equipment remained flat at zero, reflecting mixed conditions in the automotive sector.
Non-manufacturing strength was broad-based, with improvements in wholesale trade, information services and other services.
Looking ahead, manufacturers expect sentiment to be stable, with the index forecast to ease to plus 16 in November, suggesting some caution about the business outlook. The non-manufacturers' index is expected to stay at plus 28.
(Reporting by Makiko Yamazaki; Editing by Kate Mayberry)
