The Reuters Tankan manufacturing index rose to +9 in August from +7 in July, marking the second consecutive month of improvement, but is projected to drop to +4 by November amid concerns over U.S. tariff impacts.

• The non-manufacturing index declined to +24 from +30, its first drop in five months, with a slight rebound to +25 expected in the next three months.
• Transport machinery sentiment surged to +25 from +9 but is forecast to fall back to +9 by November.
• The food industry saw the sharpest drop, plunging to -25 from 0, as firms cited higher input costs.
• Real estate, construction, and retail firms reported declines in sentiment, though all remained in positive territory.
• Respondents noted ongoing uncertainty from U.S. trade policy, with some citing weaker car sales in China and heatwave-related impacts on services.