Japan’s Bank of Japan large manufacturers index rose to 14 in Q3 2025 from 13 in Q2, marking the second consecutive quarterly gain and the highest level since Q4 2024. Optimism was strong in textiles, chemicals, ceramics, machinery, shipbuilding, and motor vehicles, lifted by the recent Tokyo-Washington trade deal easing US tariff concerns. Confidence fell in lumber, petroleum, and iron & steel, while business-oriented machinery remained steady.
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