Bank of Japan (latest release)

Measures Level of a diffusion index based on surveyed large manufacturers;

Frequency Released quarterly, around the end of current quarter;

Above 0.0 indicates improving conditions, below indicates worsening conditions.

Manufacturing plays a critical role in the Japanese economy, and this survey is considered the best gauge of the industry’s health due to it’s large sample size and respected source. Source changed series calculation formula as of April 2004;

Why Traders Care It’s a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment;

Derived Via Survey of about 1,200 large manufacturers which asks respondents to rate the relative level of general business conditions;

Also Called Tankan Large Manufacturers Index;