1. Home
  2. News Releases
  3. Back Issues
  4. June FY2020
  5. The 160th Survey of SME Business Conditions (April-June 2020) Released

The 160th Survey of SME Business Conditions (April-June 2020) Released

June 30, 2020

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 from commercial and industrial associations and chambers of commerce and industry, and researchers from the National Federation of Small Business Associations.

The Small and Medium Enterprise Agency (SMEA) and the organization jointly compiled the business achievements (diffusion indices, or DIs) of SMEs for the April-June 2020 period and the forecasts (DIs) for the July-September 2020 period concerning SME business conditions, sales amounts, ordinary profits, and other data.

Key point of the survey results

The business conditions DI for SMEs dramatically worsened, showing a decrease for six consecutive quarters.

For details, see the Appendix. The following are excerpts from the survey.

Nationwide business conditions

  1. From April to June 2020, the business conditions DI for all industries was -64.1 (down by 39.7 points from the previous quarter), showing a decrease for six consecutive quarters.

  2. The business conditions DI for the manufacturing sector was -65.9 (down by 38.5 points from the previous quarter), showing a decrease for eight consecutive quarters. Looking at the business conditions DI of each industry, the DIs decreased in all industries of the manufacturing sector, including the food, pulp, paper and paper products and transportation equipment industries.

  3. The business conditions DI for the non-manufacturing sector was -63.5 (down by 40.0 points from the previous quarter), showing a decrease for six consecutive quarters. Looking at the business conditions DI of each industry, the DIs decreased in all industries of services, wholesale, retail trade and construction.

  4. The DI measuring long-term financing difficulty for all industries was -3.9 (up by 0.7 points from the previous quarter), showing an increase for the first time in three quarters, and the DI measuring short-term financing difficulty was -4.3 (down by 1.9 points from the previous quarter), marking four consecutive quarters of decrease.

Region-based business conditions

  1. The business conditions DI for all industries by region decreased in all of the Chubu, Kyushu/Okinawa, Kanto, Kinki, Chugoku, Shikoku, Tohoku and Hokkaido regions.
  2. The business conditions DI for the manufacturing sector by region decreased in all regions across Japan.
  3. The business conditions DI for the non-manufacturing sector by region decreased in all regions across Japan.

Related documents

Division in Charge

Research Office, Policy Planning Division, Business Environment Department, Small and Medium Enterprise Agency

Related website