In a recent survey by the Bank of Japan, Japan's largest service-sector firms have shown the highest level of optimism in more than three decades. Although there has been a slight softening in confidence among manufacturers, the overall outlook for the economy remains positive. The sentiment index for the country’s largest non-manufacturers reached 34 in March, exceeding expectations. Conversely, the gauge for the biggest manufacturers slipped to 11. The data from this quarterly Tankan report offers a promising outlook for Japan's economy as the central bank deliberates its next policy move.