Chip demand drives Japanese manufacturing confidence to rebound for the second consecutive month

1. The latest Short-Term Economic Survey shows that Japanese manufacturing confidence continued to improve in June, with the Business Sentiment Index rising to +13 from +8 the previous month. This marks the second consecutive month of rebound for the indicator, reflecting sustained semiconductor demand that continues to support multiple industries. 2. At the industry level, the chemical sector confidence index surged from +6 to +20, becoming the main driver of the overall index increase. Some chemical companies stated that despite ongoing geopolitical tensions, demand in semiconductor-related fields remains strong. Certain electronics and machinery firms also reported that robust chip market demand has boosted orders. 3. This survey was conducted from June 3 to 12, covering a total of 490 companies, with 215 providing valid responses. The index is calculated by subtracting the percentage of pessimistic responses from that of optimistic ones; a positive value indicates optimism dominates. The data is considered a leading indicator for the Bank of Japan’s quarterly Short-Term Economic Survey.