Japan Economy Watchers Index for Future Conditions

Economy Watchers Index for Future Conditions is based on a survey of corporate workers, who are polled to evaluate the prospects of the national economy for the next three months. The survey includes questions about changes in the activity of households and corporations, as well as the overall employment in the country. The survey is based on data collected from over 2,000 employees.

In order to get a faster and more accurate picture, the Cabinet Office designated the "Regional Research Organization" for each region, as well as the "Coordinating Research Organization" to collect and analyze the obtained data.

The survey covers 11 regions of Hokkaido, Tohoku, Kita Kanto, Minami Kanto, Tokai, Hokuriku, Kansai, Chugoku, Shikoku, Kyushu and Okinawa, and targets people who work in retail stores and entertainment industry such as department stores, supermarkets, convenience stores, taxi drivers, etc. Respondents are asked questions regarding the current and future economy situation in five-step evaluation. Their answers are used for calculating the index.

Economy Watchers Index for Future Conditions is a major indicator for evaluating the medium-term economic trends in Japan. If the index value is greater than 50, the current situation and prospects of the economy are considered positive, while the situation is considered negative at values 50 or less.