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Tankan Survey

The Tankan is the Bank of Japan’s quarterly survey of businesses across Japan. Companies are asked about current conditions, future expectations, sales, investment, employment, prices, and access to finance. One widely reported result is the business-conditions diffusion index. It subtracts the percentage of companies describing conditions as unfavourable from the percentage describing them as favourable. A reading of +15 therefore means positive answers exceed negative ones by 15 percentage points. It does not mean the economy grew by 15%. Large manufacturers receive strong attention, but the survey also covers smaller firms and non-manufacturing industries.

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