TOKYO (dpa-AFX) - Large manufacturing in Japan accelerated in the second quarter of 2026, the Bank of Japan's quarterly Tankan Survey of business sentiment showed on Wednesday with a diffusion index score of +22.

That beat forecasts for +16 and was up from +17 in the previous three months.

The outlook came in at +17, beating forecasts for +13 and up from +14 in the previous quarter.

The large non-manufacturers index came in at +37, beating forecasts for +36 - which would have been unchanged. The outlook was +28, missing expectations for +30 and down from +29 in the previous quarter.

The small manufacturing index rose to +9 from +7, while the outlook fell to +2 from +4.

The small non-manufacturing index fell to +15 from +16, while the outlook was steady at +8.

Large industry capex is seen higher by 11.5 percent, up from 3.3 percent in Q1. Small industry capex was down 8.3 percent after slumping 8.1 percent in the three months prior.

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