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The 145th Business Conditions (July-September 2016)

Survey Procedures

  Number of companies surveyed Number of valid response companies Response rate (%)
Manufacturing 4,643 (24.5) 4,486 (24.5) 96.6
Construction 2,406 (12.7) 2,331 (12.7) 96.9
Wholesale trade 1,180 (6.2) 1,135 (6.2) 96.2
Retail trade 4,670 (24.7) 4,495 (24.6) 96.3
Services 6,044 (31.9) 5,844 (32.0) 96.7
Total 18,943 (100.0) 18,291 (100.0) 96.6

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

(1) Date of the survey:
As of September 1, 2016
(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.
・The investigation has been postponed in some areas of Kumamoto Prefecture owing to the aftermath of the 2016 Kumamoto earthquakes.

Business conditions DI

(1) All industries

For the July-September period of 2016, the business conditions DI for all industries was minus 18.2 (up 1.3 points from minus 19.5 for the previous quarter), showing a decrease in the negative margin for the first time in three quarters.

The business conditions DI for manufacturing was minus 15.6 (up 1.3 points from minus 16.9 for the previous quarter), indicating a decrease in the negative margin for the first time in four quarters. The business conditions DI for non-manufacturing was minus 19.0 (up 1.4 points from minus 20.4 for the previous quarter), showing a decrease in the negative margin for the first time in three quarters.

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

(2) Manufacturing

The business conditions DI for manufacturing was minus 15.6 (up 1.3 points from minus 16.9 for the previous quarter), indicating a decrease in the negative margin.

To be specific for the 14 industries in manufacturing, the DI rose from a negative value to a positive value for chemical and allied products: 0.4 (up 11.6 points from the previous quarter). The DI remained negative with the negative margin decreased for eight industries, including minus 11.0 (up 12.3 points from the previous quarter) for iron and steel and non-ferrous metals, minus 17.2 (up 4.9 points from the previous quarter) for transportation equipment, minus 16.6 (up 4.3 points from the previous quarter) for metal products, and minus 10.9 (up 3.7 points from the previous quarter) for electricity / information and telecommunication equipment / electronic parts. The DI remained negative with the negative margin increased for five industries, including minus 32.8 (down 7.6 points from the previous quarter) for printing, minus 8.4 (down 6.6 points from the previous quarter) for pulp, paper and paper products, and minus 16.1 (down 4.8 points from the previous quarter) for textile mill products.

Changes in the business conditions DI of small and medium-sized enterprises by industry (1)
(From July-September, 2013 to July-September, 2016)

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 July-September, 2013 to July-September, 2016)

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

(3) Non-manufacturing

The business conditions DI for non-manufacturing was minus 19.0 (up 1.4 points from minus 20.4 for the previous quarter), showing a decrease in the negative margin.

To be specific for industries, the DI remained negative, with the negative margin decreased for three industries: minus 8.8 (up 2.7 points from the previous quarter) for construction, minus 17.7 (up 1.2 points from the previous quarter) for wholesale trade, and minus 28.4 (up 0.8 points from the previous quarter) for retail trade. The DI remained negative with the negative margin increased for services: minus 17.0 (down 0.3 points from the previous quarter).

Changes in the business conditions DI of small and medium-sized enterprises by industry
(From July-September, 2013 to July-September, 2016)

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

To be specific for sectors in services, the DI remained negative with the negative margin decreased for three industries: minus 7.4 (up 9.2 points from the previous quarter) for accommodations, minus 1.7 (up 3.4 points from the previous quarter) for information and communications and advertising, and minus 20.0 (up 0.9 points from the previous quarter) for eating and drinking places. The DI remained negative with the negative margin increased for four industries: minus 14.9 (down 5.6 points from the previous quarter) for services to business establishments, including transportation and warehousing, minus 22.3 (down 2.7 points from the previous quarter) for personal services, including automobile maintenance services and others, minus 21.9 (down 2.1 points from the previous quarter) for personal services related with daily lives, and minus 11.5 (down 0.7 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 July-September, 2013 to July-September, 2016)

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

(Note)

  • “Personal services related with daily lives” includes eight industries, such as real estate, laundry, beauty and bath services, and miscellaneous living-related and personal services.
  • “Personal services including automobile maintenance services and others” is automobile maintenance services and machine, etc. repair services.
  • “Services to business establishments including transportation and warehousing” includes five industries, such as road passenger transport, road freight transport, and warehousing.
  • “Services to business establishments including professional and technical services” includes five industries, such as professional services, technical activities, and waste disposal business.

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 13.7 (up 0.2 points from minus 13.9 for the previous quarter), indicating a slight decrease in the negative margin.

To be specific for industries, the DI remained negative with the negative margin decreased for both manufacturing and non-manufacturing: minus 12.4 (up 0.6 points from minus 13.0 for the previous quarter) and minus 14.2 (up 0.1 points from minus 14.3 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 16.6 (down 4.3 points from 20.9 for the previous quarter), showing a decrease in the positive margin.

Meanwhile, the unit sales price/per-customer sales DI (same as above) was minus 14.5 (down 1.1 points from minus 13.4 for the previous quarter), showing an increase in the negative margin. The profit (ordinary profit) DI (same as above) was minus 24.0 (up 0.1 points from minus 24.1 for the previous quarter), showing a slight decrease in the negative margin.

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 the current quarter level)

The excess or shortage of employees DI (excess minus shortage on the current quarter level) was minus 15.3 (down 2.0 points from minus 13.3 for the previous quarter), showing an increase in the negative margin for the first time in three quarters. The sense of shortage is growing.

To be specific for industries, the excess or shortage of employees DI remained negative with the negative margin increased for all industries: minus 23.2 (down 4.4 points from minus 18.8 for the previous quarter) for construction, minus 12.0 (down 3.5 points from minus 8.5 for the previous quarter) for manufacturing, minus 20.0 (down 1.2 points from minus 18.8 for the previous quarter) for services, minus 9.4 (down 0.5 points from minus 8.9 for the previous quarter) for retail trade, and minus 9.5 (down 0.4 points from minus 9.1 for the previous quarter) for wholesale trade.

Changes in the excess or shortage of employees DI by industry (current quarter level)

Changes in the excess or shortage of employees DI by industry (current quarter level)