Maybe you have come across the term ‘Tankan Survey’? Those who have not should look it up as it is a very important economic report released by Japan. The Tankan Survey is released by the Bank of Japan four times per year; in April, in June, in September and in December. The Tankan Survey is the most important economic survey released by the Bank of Japan and every trader should take note of the report and read it carefully.

What does the Tankan Survey cover? The Tankan Survey covers thousands of Japanese companies across all industry sectors. The survey covers companies which meets certain criteria such as minimum amount of capital. There are some exceptions for companies which the Bank of Japan classifies as significantly important to the Japanese economy. This makes the Tankan Survey a quarterly report which should not be ignored.

Companies are asked for business trends in their respective industries as well as business conditions in order to get an accurate read about the health of the Japanese business environment. Companies are also asked about their business expectations for the next quarter and for the full year. The Tankan Survey has a big impact on the Japanese Yen and forex traders should be careful prior to the release of the Tankan Survey.

When will the next Tankan Survey be released? The first Tankan Survey for 2015 will be released on Wednesday, April 1st 2015. The Tankan Survey split up their report into two categories; the first one is the regular Tankan Survey which covers large companies while an additional Tankan Survey is conducted on small companies. Each report is broken down into four segments; manufacturing and non-manufacturing as well as their respective outlooks.

What is expected for the first-quarter? The Large Manufacturers Index is expected to stand at 14 in the first-quarter, up from the 12 reported in the fourth-quarter of 2014 and the Outlook is expected at 16, up from 9. The Large Non-Manufacturers Index is expected at 17, up from 16, and the Outlook is expected at 18, up from 15. The Small Manufacturers Index is expected to stand at 4 in the first-quarter, up from the 1 reported in the fourth-quarter of 2014 and the Outlook is expected at 4, up from -5. The Large Non-Manufacturers Index is expected at 1, up from -1, and the Outlook is expected at -1, up from -4.