Japan Focus of the Week

The report highlights robust Japanese corporate sentiment in the June Tankan survey and solid 3.5% wage growth from the 2026 Shunto negotiations. Analysts focus on upcoming BOJ insights regarding input cost pass-throughs amidst ongoing supply disruptions.

Key Takeaways

• 1.Large manufacturer business sentiment reached its highest level since March 2018 in the June BOJ Tankan survey.
• 2.2026 Shunto wage negotiations resulted in a 3.50% base pay rise, maintaining growth above 3% for the third consecutive year.
• 3.The June BOJ branch managers’ meeting on July 9 will focus on impacts of Middle East supply disruptions and yen depreciation on corporate price pass-throughs.

Table of Contents

• Focus Next Week
• This Week’s Data and Events
• Upcoming Economic Indicators and Events (July 6 - 10)
• This Week's Recap: Economic Events and Data
• 2026 Shunto Final Data Release: Agreed Base Pay Rise at 3.5% With Narrowing Gap Between Company Sizes
• May Production Rises for Second Straight Month, In Line With Market Forecast
• May Retail Sales Increase, Well Above Market Forecast
• June Consumer Sentiment Index Improves Slightly; Expected Inflation Remains High but No Acceleration
• Reference: Japan One Month Economic Calendar

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