Bank of Japan (BoJ) Tankan Large Manufacturing Outlook

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 Outlook reflects forecasts of industrial companies concerning the pace of the economic growth and business environment for the next quarter. The calculation is based on the survey of the leading industry representatives. The questions cover the business environment, supply and demand, inventory, production volumes, employment, financial position, profit, tax and credit conditions, as well as changes in product prices.

The index announced by the Bank of Japan's National Short-term Economic Survey (Tankan) is an important indicator of Japanese economy that determines the business condition of large enterprises and is largely attributed to the manufacturing industry.

A number above 0 indicates an improvement, while a number below 0 indicates a deterioration.