Page 404 - Invited Paper Session (IPS) - Volume 1

IPS173 Yuki U.
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Chart 3 : R&D investment Chart 4 : The coverage of the Tankan

Against this background, in late 2016 the Bank proposed to revise survey
items, to more accurately capture the changes in economic conditions
reflecting developments in overseas business activities. The main revisions to
the Tankan are as follows: (1) the introduction of a new survey category on a
consolidated basis which captures overseas business activity, such as global
sales and investments; (2) the addition of R&D investment; and (3) the
enhancement of the exchange rate survey.

3 Survey items of the Tankan consist of the following four categories with 26 items surveyed on
the basis of nonconsolidated accounting: (1) Judgment survey (business conditions; overseas
supply and demand conditions for products; domestic supply and demand conditions for
products and services; inventory level of finished goods and merchandise; wholesalers'
inventory level; production capacity; employment conditions; financial position; lending attitude
of financial institutions; conditions for CP issuance; change in interest rate on loans; change in
output prices; change in input prices); (2) Annual projections (sales; exports; exchange rates for
exports; operating profits; current profits; net income; fixed investment; land purchasing
expenses; software investment; R&D investments); (3) Inflation outlook of enterprises (outlook
for output prices; outlook for general prices); (4) Number of new graduates hired.
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