Bank of Japan (BoJ) Tankan Large Manufacturing Index

The official name of Tankan is the "short-term economic observation survey". This is a statistical survey conducted by the Bank of Japan based on the Statistical Law, and it aims to accurately grasp corporate trends throughout the country and to contribute to the appropriate management of monetary policy. It is implemented quarterly for approximately 10,000 companies across the country.

Tankan investigates items throughout the company's activities, including the actual and predicted values of business plans such as corporate business conditions, economic environment, sales, revenues, and capital expenditures.

BoJ Tankan Large Manufacturing Index shows the sentiment of large corporations on the pace of economic growth and business environment for a given period. Large corporations are those having a capital of 300 million yen or more, or those having more than three hundred employees. The calculation is based on the survey which includes questions on the business environment, demand and supply, inventory, production, employment, financial status, profit, tax and credit conditions, and product price changes.

The export of industrial goods comprises an important part of the country's GDP, therefore the index defines the level of Japanese economy development and the situation in the manufacturing sector.

The index is an important indicator of Japanese economy and is largely attributed to the manufacturing industry. A number above 0 indicates an improvement, but a number below 0 indicates a deterioration.