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The 166th Survey of SME Business Conditions (October -December 2021) Released

Japanese

December 10, 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 October-December 2021 period and the forecasts (DIs) for the January-March 2022 period, concerning SME business conditions, sales amounts, ordinary profits, and other data.

Key point in the survey results

The business conditions DI for SMEs increased for the first time in two quarters.

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

Nationwide business conditions

  1. From October to December 2021, the business conditions DI for all industries was -23.3 (up by 5.1 points from the previous quarter), showing an increase for the first time in two quarters.

  2. The business conditions DI for the manufacturing sector was -19.7 (down by 2.2 points from the previous quarter), showing a decrease for two consecutive quarters. Looking at the business conditions DI of each industry, improvements were seen in 3 industries: food products; ceramic, stone, and clay products; and furniture and accessories, while the DIs for 11 industries, including transportation equipment, chemicals, textiles, and metal products, decreased.

  3. The business conditions DI for the non-manufacturing sector was -24.6 (up by 7.5 points from the previous quarter), showing an increase for the first time in two quarters. Looking at the business conditions DI of each industry, the DIs increased in the services, retail trade, wholesale, and construction industries.

  4. The DI measuring long-term financing difficulty was -6.0 (up by 1.1 points from the previous quarter), showing an increase for the first time in five quarters, and the DI measuring short-term financing difficulty was -4.1 (up by 0.5 points from the previous quarter), showing an increase for the first time in four quarters.

Region-based business conditions

1. The business conditions DI for all industries by region increased in all regions across Japan.
2. The business conditions DI for the manufacturing sector by region decreased in all regions other than Hokkaido.
3. The business conditions DI for the non-manufacturing sector by region increased in all regions across Japan.

Division in Charge

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

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