Demand for loans from Japanese firms worsened markedly in July compared to April, an official survey of lending institutions shows.
The Bank of Japan said the diffusion index measuring the demand for loans from firms fell to -17 from -10 in April. The index subtracts those who report falling demand from those who register rising demand.
Demand for loans from large firms improved to -10 in July from -15 in April. Demand from medium-sized firms worsened to -12 from -7 and that from small firms deteriorated sharply to -14 from -5.
The survey also showed that demand for loans from local governments fell to 6 from 15. Household demand for loans fell slightly to -2 from 0.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.