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The 136th Business Conditions (April-June 2014)

Survey Procedures

  Number of companies surveyed Number of valid response companies Response rate (%)
Manufacturing 4,624 (24.5) 4,514 (24.6) 97.2
Construction 2,413 (12.7) 2,329 (12.7) 96.5
Wholesale trade 1,200 (6.3) 1,149 (6.3) 95.8
Retail trade 4,696 (24.8) 4,504 (24.6) 95.9
Services 6,009 (31.7) 5,819 (31.8) 96.8
Total 18,960 (100.0) 18,315 (100.0) 96.6

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

(1) Date of the survey:
As of June 1, 2014
(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

For the April-June period of 2014, the business conditions DI for all industries was minus 23.2 (down 12.1 points from minus 11.1 for the previous quarter), proving an increase in the negative margin.

The business conditions DI for manufacturing was minus 18.3 (down 15.7 points from minus 2.6 for the previous quarter), indicating an increase in the negative margin. The business conditions DI for non-manufacturing was minus 24.7 (down 10.7 points from minus 14.0 for the previous quarter), showing an increase in the negative margin.

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

The business conditions DI for manufacturing was minus 18.3 (down 15.7 points from minus 2.6 for the previous quarter), indicating an increase in the negative margin.

To be specific for the 14 industries in manufacturing, the DI fell from a positive value to a negative value for seven industries, including minus 35.2 (down 44.4 points from the previous quarter) for Timbers and wood products, minus 15.8 (down 30.6 points from the previous quarter) for Iron and steel and non-ferrous metals, minus 19.4 (down 30.3 points from the previous quarter) for Chemicals and allied products, and minus 18.3 (down 27.5 points from the previous quarter) for Furniture and fixtures. The DI remained negative with the negative margin increased for seven industries, including minus 22.9 (down 21.4 points from the previous quarter) for Miscellaneous manufacturing industries, minus 35.8 (down 16.6 points from the previous quarter) for Printing, minus 14.0 (down 13.9 points from the previous quarter) for Electricity / information and telecommunication equipment / electronic parts, and minus 32.8 (down 13.7 points from the previous quarter) for Pulp, paper and paper products.

Changes in the business conditions DI of small and medium-sized enterprisesby industry (1)
(From April-June, 2011 to April-June, 2014)

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 enterprisesby industry (2)
(From April-June, 2011 to April-June, 2014)

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

(3) Non-manufacturing

The business conditions DI for non-manufacturing was minus 24.7 (down 10.7 points from minus 14.0 for the previous quarter), showing an increase in the negative margin.

To be specific for industries, the DI fell from a positive value to a negative value for Construction: minus 7.7 (down 11.6 points from the previous quarter). The DI remained negative with the negative margin increased for three industries: minus 27.9 (down 21.2 points from the previous quarter) for Wholesale trade, minus 37.3 (down 12.2 points from the previous quarter) for Retail trade, and minus 21.3 (down 6.6 points from the previous quarter) for Services.

Changes in the business conditions DI of small and medium-sized enterprises
by industry
(From April-June, 2011 to April-June, 2014)

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

To be specific for sectors in Services, the DI became negative from a positive value for Information and communications and advertising: minus 9.0 (down 12.1 points from the previous quarter). The DI remained negative with the negative margin increased for other sectors, including minus 28.2 (down 14.2 points from the previous quarter) for Personal services including automobile maintenance services and others, minus 17.1 (down 11.1 points from the previous quarter) for Services to business establishments including transportation and warehousing, minus 27.4 (down 5.7 points from the previous quarter) for Personal services related with daily lives, and minus 10.0 (down 5.1 points from the previous quarter) for Services to business establishments including professional and technical services.

Changes in the business conditions DI of small and medium-sized enterprises engaged
in services industries by industry
(From April-June, 2011 to April-june, 2014)

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 for all industries was minus 16.3 (down 4.1 points from minus 12.2 for the previous quarter), indicating an increase in the negative margin.

To be specific for industries, the DI remained negative with the negative margin increased for both manufacturing and non-manufacturing: minus 13.1 (down 4.2 points from minus 8.9 for the previous quarter) and minus 17.4 (down 4.2 points from minus 13.2 for the previous quarter), respectively.

 

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 (1)] Trends in the materials/goods purchase unit prices DI, the unit sales price/per-customer sales DI, and the profit (ordinary profit) DI

For the current quarter, the materials/goods purchase unit prices DI (“rise” minus “fall” on a year-on-year basis) was 50.4 (up 11.0 points from 39.4 for the previous quarter), showing an increase in the positive margin for the sixth straight quarter. Meanwhile, the unit sales price/per-customer sales DI (same as above) was minus 8.6 (up 3.9 points from minus 12.5 for the previous quarter), indicating a decrease in the negative margin, and the profit (ordinary profit) DI (same as above) was minus 25.4 (down 2.8 points from minus 22.6 for the previous quarter), showing an increase in the negative margin. Under such circumstances, rises in materials prices, etc. due to a cheaper yen must be closely watched in the future.

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)

[Topics (2)] Changes in the excess or shortage of employees DI by industry

The excess or shortage of employees DI (“excess” minus “shortage” by current quarter level) decreased over the period from the middle of last year to the beginning of this year. For the current quarter, the DI for some industries turned upward, but the DI for all industries was minus 10.0, remaining “insufficient.” To be specific for industries, the DI for Construction and Services in particular indicated strong feelings of shortage.

Changes in Excese or shortage of employees DI of small and medium-sized enterprises by industry

Changes in Excese or shortage of employees DI of small and medium-sized enterprises by industry