BOJ Tankan report for Q1 2022: Headline Large Manufacturers index +14 (expected +12)

The Tankan is a survey of both manufacturing and service companies designed to assess business conditions in Japan.

Tankan Large Manufacturing Index comes in at +14

• expected 12, prior was 18
• lowest since June 2021
• first fall from the previous quarter in 7 quarters

Tankan Large Non-Manufacturing Index 9

• expected 5, prior was 9
• first fall from the previous quarter in 7 quarters

Tankan Large Manufacturing Outlook 9

• expected 10, prior was 13

Tankan Large Non-Manufacturing Outlook -10

• expected 8, prior was 8

As part of the survey is the inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations section:

• firms expect CPI +1.6% y/y three years from now (was +1.3% in the previous survey)
• and expect CPI +1.6% y/y 5 years from now (from +1.4%)

There are also FX forecasts for firms:

• firms see USD/JPY averaging 111.93 for the fiscal year 22/23
• see EUR/JPY averaging 128.18 for FY 22/23

USD/JPY is little changed on the data publication, up a few tics only