Business climate: PMIFavourable developments for the business climate. The manufacturing PMI stood at 50.1 in June (+0.7 pp, the first expansion posted since May 2024) thanks to growth in output (51.2, +2.5 pp). The services sector also improved (51.7, +0.7 pp).
In Q2, the Tankan business conditions survey remained stable overall (15) for both the manufacturing (7) and non-manufacturing (21) sectors, despite the issue of US tariffs.
Household confdenceImproving household confidence. The Cabinet Office survey reported an improvement in confidence, which reached 34.5 (+1.7 points) in June, its highest level since February.
The increase was widespread across all sub-components but was largest in the willingness to buy durable goods (+2.8 points), which remains low in absolute terms, nevertheless. Households remained positive about income growth and employment.
