Bank of Japan Q2 Tankan report coming up soon – a similar indicator has been much improved

<p>The Tankan Report is due at 2350 GMT.</p><p>The term "Tankan" is short for "Tanshin Kansoku," which roughly translates to "Short-term Economic Observation".</p><ul><li>its published quarterly by the BOJ and is a closely watched economic indicator</li><li>the BoJ surveys thousands of Japanese firms of all sizes, across a wide range of industries</li><li>questions are focused on firms' current business conditions and their expectations for the coming quarter and year</li><li>covering aspects such as production, sales, profits, investment in plant and equipment, employment, prices, and more</li></ul><p>The headline(s) to to the report are diffusion indexes, which reflects the difference between the percentage of firms that are optimistic about business conditions and those that are pessimistic. </p><ul><li>a positive reading suggests that more companies are optimistic, while a negative reading indicates more pessimism</li></ul><p>The report is segmented into "large manufacturers," "large non-manufacturers," "small manufacturers," and "small non-manufacturers" so as to help provide insight into different sectors of the economy. </p><p>Each month we get the Reuters survey of the same name that uses a similar methodology to the BoJ Tankan. The latest was encouraging:</p><ul><li><a href="https://www.forexlive.com/news/japan-reuters-tankan-3rd-consecutive-month-of-large-manufacturer-sentiment-improving-20230620/" target="_blank" rel="follow" data-article-link="true">Japan – Reuters Tankan 3rd consecutive month of large manufacturer sentiment improving</a></li></ul><p>While the Reuters Tankan is similar to the Tankan survey conducted by the Bank of Japan:</p><ul><li>its conducted monthly vs. the BoJ's quarterly</li><li>the Reuters Tankan has a wider coverage of industries and is not limited to large corporations
survey</li><li> is based on interviews with executives of about 500 Japanese companies, covering a range of industries and size</li></ul><p align="left">This snapshot from the ForexLive economic data calendar, <a href="https://www.forexlive.com/EconomicCalendar/" target="_self" rel="follow">access it here</a>.</p><ul><li>The times in the left-most column are GMT.</li><li>The numbers in the right-most column are the 'prior' (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.