Sunday, July 1, 2007

The Tankan Survey ....

"Tankan Survey is an economic survey of Japanese business issued by the central Bank of Japan, which it then uses to formulate monetary policy. The report is released four times a year in April, July, October and mid-December.

The survey covers thousands of Japanese companies with a specified minimum amount of capital, although firms deemed sufficiently influential may also be included. The companies are asked about current trends and conditions in the business place and their respective industries as well as their expected business activities for the next quarter and year.

Confidence among Japan's largest manufacturers held near a two-year high and companies said they're increasing spending, supporting the central bank's argument for a third interest-rate increase in seven years.
The Tankan, Japan's most closely watched business survey, showed confidence among large manufacturers was unchanged at 23 points in June from March and near December's two-year high of 25, the Bank of Japan said in Tokyo today. The result matched the median estimate of 26 economists surveyed by Bloomberg News. A positive number means optimists outnumber pessimists.
Sentiment among non-manufacturers held at a 15-year high of 22 points for a third quarter as the export-led expansion creates jobs and spurs consumer spending. The survey supports expectations that the bank will raise rates as soon as August.
``The good business environment for the manufacturing sector is spreading to the non-manufacturers and I think that might have something to do with growing household income,'' said Masayuki Kichikawa, a senior economist and currency analyst at Mitsubishi UFJ Securities in Tokyo. The survey result is ``somewhat'' supportive of a rate increase in August, he said.
The yen traded at 123.24 per dollar at 9:50 a.m. in Tokyo compared with 123.09 before the report was published. The yield on Japan's benchmark 10-year bond fell 1 basis point to 1.855 percent.

1 comment:

simon_alibaba said...