Japan Tankan Non-Manufacturing Index

Japan’s Tankan Non-Manufacturing Index is a quarterly Bank of Japan survey of business conditions among large service-sector firms. It is a diffusion index, not a measured volume of services output: it reflects the balance of respondents reporting favourable versus unfavourable conditions. The current reading, change from the prior survey and firms’ outlook help show the breadth of service-sector momentum. Services can be influenced by domestic consumption, wages, tourism, prices, labour shortages and financing conditions. Review the Tankan outlook and investment plans with household spending, employment, CPI and services PMI. A surprise can refine views on domestic demand and BOJ normalization risk, but survey sentiment is not a direct GDP result or a policy decision.