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The 133rd Business Conditions (July-September 2013)

Survey Procedures

  Number of companies surveyed Number of valid response companies Response rate (%)
Manufacturing 4,637 (24.4) 4,509 (24.5) 97.2
Construction 2,442 (12.8) 2,355 (12.8) 96.9
Wholesale trade 1,200 (6.3) 1,154 (6.3) 96.2
Retail trade 4,704 (24.8) 4,556 (24.8) 96.9
Services 5,994 (31.7) 5,811 (31.6) 96.9
Total 18,996 (100) 18,385 (100) 96.9

Note: Figures in parenthesis show the composition ratios (%)

(1) Date of the survey:
As of September 1, 2013
(2) Survey method:
Feedback given to management consultants belonging to the Commerce and Industry Association and Chamber of Commerce and Industry throughout the country, and to survey personnel of the Federation of Small Business Associations
(3) Companies surveyed:
The nationwide complement of small and medium-sized enterprises as defined in the Small and Medium-sized Enterprise Basic Act
(4) Others
・For every quarter from April to June, the data in previous years is replaced with seasonally-adjusted data.
・The most recent long-term time series data is displayed on the website of the Small and Medium Enterprise Agency as well as that of the Organization for Small and Medium Enterprises and Regional Innovation

Business conditions DI

(1) All industries

From July to September 2013, the business conditions DI (diffusion index) of all industries deteriorated by 1.0 percentage points from minus 17.7 in the preceding quarter to minus 18.7, which means an increase of the negative gap.

While the business conditions DI of the manufacturing sector improved by 1.9 percentage points from minus 17.0 in the preceding quarter to minus 15.1 with the negative gap reduced, the DI of the non-manufacturing sector worsened by 1.7 percentage points from minus 17.9 in the previous quarter to minus 19.6, with the negative gap expanded.

Changes in the business conditions DI of small and medium-sized enterprises

Changes in the business conditions DI of small and medium-sized enterprises

(2) Manufacturing industry

The business conditions DI of the manufacturing sector improved by 1.9 percentage points from minus 17.0 in the preceding quarter to minus 15.1, which means a decrease of the negative gap.

Among the 14 industries in the manufacturing sector, 10 industries saw their negative gap reduced from the preceding quarter, with the DI improving by 9.0 percentage points to minus 0.1 in chemical and allied products, by 8.4 percentage points to minus 14.2 in textile mill products, by 7.2 percentage points to minus 10.1 in machinery and equipment, by 4.7 percentage points to minus 25.7 in printing, and by 3.2 percentage points to minus 7.6 in ceramic, stone and clay products, while 4 industries saw their negative gap expanded from the previous quarter, with the DI worsening by 15.5 percentage points to minus 10.8 in pulp, paper and paper products, by 5.6 percentage points to minus 15.3 in transportation equipment, by 3.6 percentage points to minus 22.0 in food, and by 0.3 percentage points to minus 14.3 in iron and steel and non-ferrous metals.

Changes in the business conditions DI of small and medium-sized enterprises by industry (1)
(From April-June, 2010 to July-September, 2013)

Changes in the business conditions DI of small and medium-sized enterprises by industry (1)

Changes in the business conditions DI of small and medium-sized enterprises by industry (2)
(From April-June, 2010 to July-September, 2013)

Changes in the business conditions DI of small and medium-sized enterprises by industry (2)

(3) Non-manufacturing industries

The business conditions DI of the non-manufacturing sector deteriorated by 1.7 percentage points from minus 17.9 in the previous quarter to minus 19.6, which means an increase of the negative gap.

From an industry-specific viewpoint, the negative gap decreased from the previous quarter in wholesale trade with the DI improving by 3.0 percentage points to minus 14.4, and increased from the preceding quarter in retail trade, construction, and services with the DI worsening by 2.7, 2.6 and 1.4 percentage points to minus 29.3, minus 7.1 and minus 18.2, respectively.

Changes in the business conditions DI of small and medium-sized enterprises
by industry or trade
(From April-June, 2010 to July-September, 2013)

Changes in the business conditions DI of small and medium-sized enterprises by industry or trade

Specifically in the services industry, the negative gap decreased from the previous quarter in information/communications and advertising with the DI improving by 6.1 percentage points to minus 0.2, and increased from the preceding quarter in personal services (automobile maintenance and others), services to business establishments (transportation and warehousing), accommodations, and personal services (daily life-related) with the DI worsening by 8.2, 3.0, 2.6 and 2.3 percentage points to minus 21.5, minus 21.3, minus 11.9 and minus 24.8, respectively.

Changes in the business conditions DI of small and medium-sized enterprises engaged
in services industries by industry
(From April-June, 2010 to July-September, 2013)

Changes in the business conditions DI of small and medium-sized enterprises engaged in services industries by industry

Changes in the business conditions DI of small and medium-sized enterprises by size of trade

Changes in the business conditions DI of small and medium-sized enterprises by size of trade

Financing DI

The financing DI of all industries deteriorated by 0.3 percentage points from minus 15.7 in the preceding quarter to minus 16.0, which means an increase of the negative gap.

While the financing DI of the manufacturing sector improved by 1.0 percentage points from minus 15.3 in the preceding quarter to minus 14.3 with the negative gap reduced, the DI of the non-manufacturing sector worsened by 1.1 percentage points from minus 15.6 in the previous quarter to minus 16.7 widening the negative gap.

Changes in the business conditions DI of small and medium-sized enterprises by size of trade

Changes in the business conditions DI of small and medium-sized enterprises by size of trade

Topics

In this quarter, the materials/goods purchase unit prices DI (“rise” minus “fall”, year-on-year basis) improved by 3.9 percentage points from 30.0 in the preceding quarter to 33.9 with the positive gap increased for the third consecutive quarter. On the other hand, while the unit sales price/per-customer sales DI (same as above) improved by 1.4 percentage points from minus 16.9 in the preceding quarter to minus 15.5 with the negative gap decreased, the profits (ordinary profit) DI (same as above) deteriorated by 0.2 percentage points from minus 26.2 in the previous quarter to minus 26.4 slightly increasing the negative gap, suggesting the necessity of closely monitoring rises in material prices due to the depreciation of the yen.

The materials/goods purchase unit prices DI, the unit sales price/per-customer sales DI and the ordinary profit DI (on a year-on-year basis)

The materials/goods purchase unit prices DI, the unit sales price/per-customer sales DI and the ordinary profit DI (on a year-on-year basis)