Business tendency statistics: A leading indicator in Malaysia business outlook

Business tendency survey indicators are widely recognized as a key instrument for business cycle forecasting. Results from business tendency surveys are often used to construct leading indicators in business economy in Malaysia. The Business Tendency Survey is conducted quarterly by the Department of Statistics, Malaysia since 2004. The survey gathers views on business performance from the senior management of large establishments in the various sectors in Malaysia. The main characteristic of this survey is to collect information on the direction of change for a number of key economic variables. The objective of this survey is to collect qualitative information from business managers on their assessment of the business performance for the past quarter and the expectations for the next three and six months. The information from this survey is very useful for monitoring the current economic situation. The survey also provides quick qualitative indicators for important economic variables, for which no quantitative information is available. The rapid execution and easy processing of results provide advance warning of turning points in the overall activity.