Before calculating the index of business activity conducted a large-scale Japanese business survey, which is attended by about 10,000 entrepreneurs. About half of them small businesses, about a third of a medium-sized business owners, and the rest - large companies and corporations. In parallel with the survey carried out a survey of owners of top - managers.
Based on the results to determine the state of the environment for all types of businesses, the growth rate of production and marketing, the fluctuations of supply and demand within the country, changes in prices, income, the percentage of direct investment in the economy as well as the percentage of the working population and fiscal conditions.
Assessment of business activity takes place in two main parameters:
Diffusion index - calculated as the ratio of respondents who gave a positive and a negative assessment in question.
Percent chandge - percentage change on previous year to the current value.
Impact indicator on the currency market is as follows - with the growth of business activity there is a substantial strengthening of the Japanese Yen.
By analogy with the LIBOR indicator designed to control short-term interest rates. This helps to control the level of inflation. Reserve Bank of New Zealand accumulates funds of commercial banks in deposit accounts at an interest rate of 0.25% less than the official rate. In this case, loans are granted at interest of 0.25 more than the official rate. Decision to change the level of official rates adopted by the Governing Board of the organization.
Too high a level of this index leads to lower economic growth. This is due to the decline of consumer loans in favor of increasing the savings. This situation is favorable only against the real and at the same time, high rates of economic growth and development of the state. Otherwise, you may begin stagnant processes, and other negative consequences that will be in the long term.