BOJ Releases Takan Survey Details
- Monday, 04 April 2011 03:30
The Takan Survey, used to measure the Japanese business sentiment, is an important leading indicator of the country’s economy. Here are the latest details released by the Bank of Japan.
| BUSINESS CONDITIONS | Dec | March | June | ||
|---|---|---|---|---|---|
| Full Data | Post-Quake | Full Data | Post-Quake | ||
| Big Manufacturers | 5 | 6 | 6 | 2 | -2 |
| Big Non-Manufacturers | 1 | 3 | 7 | -1 | -4 |
| Mid-Sized Manufacturers | 1 | -4 | -7 | -8 | -14 |
| Mid-Sized Non-Mfg | -10 | -6 | -2 | -12 | -14 |
| Small Manufacturers | -12 | -10 | -6 | -16 | -18 |
| Small Non-Mfg | -22 | -19 | -19 | -27 | -29 |
Post-quake indexes were calculated between March 12 and March 31.
The results show that the majority of the big manufacturers expect an important deterioration of business conditions for the month of June.
In the short term (March), the impact of the earthquake is negligible.
However, June post-quake indexes are much worse than the pre-quake values. This suggests a significant deterioration of business conditions due to the earthquake, in the medium term. Nothing reassuring for the Japanese economy!
With the government already estimating the tsunami total cost at $309 billion, making it the world’s most expensive natural disaster ever, the Takan survey gives new reasons for the Bank of Japan to keep its rate near zero.
