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The 165th Survey of SME Business Conditions (July-September 2021) Released

Japanese

September 30, 2021

SME & Regional Economic Policy

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 above organization jointly compiled the business achievements (diffusion indices, or DIs) of SMEs for the July-September 2021 period and the forecasts (DIs) for the October-December 2021 period, concerning SME business conditions, sales amounts, ordinary profits, and other data.

Key point in the survey results

The business conditions DI for SMEs decreased for the first time in two quarters.
For details, see the Appendix. The following are excerpts.

Nationwide business conditions

  1. From July to September 2021, the business conditions DI for all industries was -28.4 (down by 2.6 points from the previous quarter), showing a decrease for the first time in two quarters.
  2. The business conditions DI for the manufacturing sector was -17.5 (down by 0.3 points from the previous quarter), showing a decrease for the first time in five quarters. Looking at the business conditions DI of each industry, improvements were seen in 8 industries, including chemicals, textiles, transportation equipment, and machinery and appliances, while the DIs for 6 industries, including food products, steels/non-ferrous metals, furniture and accessories, and metal products, decreased.
  3. The business conditions DI for the non-manufacturing sector was -32.1 (down by 3.3 points from the previous quarter), showing a decrease for the first time in two quarters. Looking at the business conditions DI of each industry, the DIs decreased in the retail trade, wholesale, construction, and services industries.
  4. The DI measuring long-term financing difficulty was -7.1 (down by 1.9 points from the previous quarter), showing a decrease for four consecutive quarters, and the DI measuring short-term financing difficulty was -4.6 (down by 1.1 points from the previous quarter), showing a decrease for three consecutive quarters.

Region-based business conditions

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

Division in Charge

Research Office, Business Environment Department, Small and Medium Enterprise Agency

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