Japan’s September Tankan survey showed large manufacturers’ business conditions index rising from 22 to 24. Large non-manufacturers reported weaker conditions, while smaller manufacturers also improved. The central bank collected responses through September 30. Companies’ December forecasts were below their current readings, and the survey separately tracked the balance of firms reporting input and output price changes.
Japan’s September Tankan survey put large manufacturers’ business conditions index at 24, up from 22 in June. The index compares firms reporting favourable and unfavourable conditions. The Bank of Japan released its survey on October 1 after collecting responses between August 26 and September 30. The survey covered 9,104 enterprises with a 99.4 percent response rate.[1], [2]
Large non-manufacturers’ index fell from 37 to 35, while their December forecast was 30. Large manufacturers forecast 21 for December, below their September reading. Among medium-sized companies, the manufacturing index rose from 17 to 23 and the non-manufacturing index declined from 26 to 24. Small manufacturers improved from 9 to 14, while small non-manufacturers remained at 15. The all-industry, all-size index increased from 18 to 21.[1]
The business conditions index subtracts the share of firms reporting unfavourable conditions from those reporting favourable conditions. Price indexes similarly compare companies reporting increases and decreases. Large manufacturers’ output-price index stayed at 40, while their input-price index fell from 62 to 59. Small manufacturers’ output-price index rose from 40 to 41 and their input-price index declined from 76 to 71. These balances are not the percentage rate of realised price inflation.[1]
