Chart 3  Output Gap 8  %  reversed, DI ("excessive" minus "insufficient"), % points  -40  Output gap (left scale) 6  Tankan Tankanfactor factorutilization utilization index index (right (right scale)  -30  4  -20  2  -10  0  0  -2  10  -4  20  -6  30  -8 CY 85  40 90  95  00  05  10  15  20  Source: Bank of Japan.
Notes: 1. T he output gap is based on staff estimates. 2. T he Tankan factor utilization index is calculated as the weighted average of theproduction capacity DI and the employment conditions DI for all enterprises. The capital and labor shares are used as weights. T here is a discontinuity in the data in December 2003 due to a change in the survey framework.