BOJ Q1 Tankan survey out now – Large manufacturing index: 24 (expected 25)

The Bank of Japan Tankan
Survey of manufacturing and service companies is designed to
assess business conditions in Japan. The survey is once a quarter, the results for Q1:

Tankan Large Manufacturing Index, 24 (first drop for this index in 2 quarters) 

  • expected 25, prior was 26

Tankan Large Non-Manufacturing Index, 23

  • expected 24, prior was 25 

Tankan Large Manufacturing Outlook, 20

  • expected 22, prior was 21

Tankan Large Non-Manufacturing Outlook, 20

  • expected 21, prior was 20

Tankan Large All Industry Capex, 2.3% 

  • expected 1.0%, prior was 6.4% 

Tankan Small Manufacturing Index, 15

  • expected 14, prior was 15 

Tankan Small Non-Manufacturing Index, 10

Tankan Small Manufacturing Outlook, 12

  • expected 10, prior was 11 

Tankan Small Non-Manufacturing Outlook, 5

As part of the survey are outlooks for the currency also – large maufacturers seel uSD/JPY at 109.66 in fiscal year 2018 (previous assumption was 110.67). An official from the Bank says some of the firms surveyed say they are cautious on their outlook due to strong yen.

Scanning over those headline results, firms are still positive but a slight slip amongst large companies (smaller manufacturers and non manufacturers improving)  – and the outlook for the large firms is a little lower still. 

Oh … and a ps. on the capex – a good result in intentions for business investment. 

The indexes are a measure of sentiment

  • Calculated by subtracting the number of respondents saying conditions are poor from those responding conditions are good

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