Ministry of Economy, Trade and Industry
Font Size Change
S
M
L

Small and Medium Enterprise Agency The 140th Survey of SME Business Conditions (April–June 2015)

The Survey of SME Business Conditions is a quarterly survey conducted by the Organization for Small and Medium Enterprises and Regional Innovation, targeting about 19,000 small and medium enterprises (SMEs) across Japan in cooperation with business management advisors of the societies of commerce and industry and chambers of commerce as well as researchers of the National Federation of Small Business Associations.
The Small and Medium Enterprise Agency and the Organization jointly compiled the business achievements (DI) of SMEs for the April–June 2015 period and the forecasts (DI) for the July–September 2015 period concerning SME business conditions, sales amounts, ordinary profits, and other elements.

1.Key survey results

The recent business conditions of small and medium enterprises appear to be at a standstill in some industries, while showing movement towards picking up as a whole.

  • Ÿ The business conditions DI (diffusion index) of all industries show a slight increase in the negative margin for the first time in two quarters.
  • Ÿ Looking at the business conditions DI of each industry, the negative margin in the manufacturing sector increased, and those in the non-manufacturing sectors also increased slightly.
  1. From April to June 2015, the business conditions DI of all industries deteriorated by 0.9 percentage points from minus 17.8 in the previous quarter to minus 18.7, showing a slight increase in the negative margin.
  2. The business conditions DI of the manufacturing sector deteriorated by 1.5 percentage points from minus 14.1 in the previous quarter to minus 15.6, which indicates that the negative margin increased. Looking at the business conditions DI of each industry, the negative margin decreased in seven industries including the pulp, paper, and paper products; furniture and fixtures; and textile industries. On the other hand, a positive value turned into a negative value in the machinery industry, and the negative margin increased in six industries including the ceramic, stone and clay products; iron, steel, and non-ferrous metals; and timber and wood products industries.
  3. The business conditions DI of the non-manufacturing sectors deteriorated by 0.3 percentage points from minus 19.3 in the previous quarter to minus 19.6, which indicates that the negative margin increased slightly. Looking at the business conditions DI of each industry, the negative margin decreased in two industries, namely, the retail and service sectors, while the negative margin in two industries, namely, the wholesale and construction sectors, increased.
  4. The financing DI of all industries deteriorated by 0.1 percentage points from minus 14.5 in the previous quarter to minus 14.6, while the DI measuring long-term financing difficulty also deteriorated by 0.2 percentage points from minus 5.8 in the previous quarter to minus 6.0, which means that the negative margin increased slightly. The DI measuring short-term financing difficulty also deteriorated by 0.5 percentage points from minus 2.9 in the previous quarter to minus 3.4, which means that the negative margin increased slightly.

Topics

  1. In this quarter, the positive margin in the materials/goods purchase unit prices DI (calculated by subtracting “decreasing” from “increasing”; year-on-year comparison) improved by 0.8 percentage points from 39.7 in the previous quarter to 40.5, showing a slight increase in the positive margin, and still remains at a high level. On the other hand, the unit sales price / per-customer sales DI (calculated in the same way) improved by 3.8 percentage points from minus 12.7 in the previous quarter to minus 8.9, and the profit (ordinary profit) DI (calculated in the same way) also improved by 5.7 percentage points, from minus 29.0 in the previous quarter to minus 23.3. Both DIs indicate that price increases for raw materials and other factors due to the depreciation of the yen should be closely and continuously monitored although the negative margin decreased and appears to be improving slightly.
  2. The business conditions DI (calculated by subtracting “bad” from “good” for the current quarter’s levels) improved by 5.1 percentage points from minus 29.7 in the previous quarter to minus 24.6, showing a decrease in the negative margin. Looking at DIs by industry, the negative margin decreased in four industries, including the retail sector, which improved 9.2 percentage points from minus 47.0 in the previous quarter to minus 37.8, and the service sector, which improved by 7.8 percentage points from minus 26.9 in the previous quarter to minus 19.1. On the other hand, the construction industry deteriorated by 2.2 percentage points from minus 11.9 in the previous quarter to minus 14.1, showing an increase in the negative margin.

Note: DIs are calculated on a seasonally-adjusted quarter-on-quarter basis unless otherwise specified.

For further details, see the Japanese language press release.

Release date

June 29, 2015

Division in Charge

  • Research Office, Policy Planning Division, Business Environment Department, Small and Medium Enterprise Agency
  • Business Support Information Center, Organization for Small and Medium Enterprises and Regional Innovation

Related Information

Data Reports

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.