The June Tankan survey for large non‑manufacturing firms rose to a index of 37, above the forecast of 36. The large manufacturers' production capacity index fell to zero from a positive reading in March, while the overall employment index dropped to minus 37. Companies now expect a 2.7% annual rise in consumer prices, slightly higher than the previous 2.6% estimate, and forecast a 2.6% average annual inflation over the next three years. Capital investment expectations diverge, with small firms anticipating an 8.3% decline and large firms a 11.5% increase for fiscal year 2026/27. Confidence indices for large manufacturers and non‑manufacturers reached their highest levels since 2018 and 1991 respectively.