Friday, December 12, 2014

"Tankan" - The Short-Term Survey of Economic Conditions

The Short-Term Survey of Economic Conditions (known in Japanese as tankan), is an enormous statistical survey that the Bank of Japan carries out quarterly. The survey is conducted to provide an accurate picture of business trends of companies in Japan to help the BoJ in carrying out monetary policy. It is arguably the most important economic statistic that comes out of Japan and is closely watched by all financial markets.

The survey covers thousands of Japanese companies with over ¥20mn of capital. The companies are asked about current trends and conditions in their business and their industries as well as their expected business activities for the next quarter and year. The survey greatly influences the stock market and expectations for the economy and therefore affects the FX market as well.

The Q4 tankan will be released on Monday.



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