Saitama Prefecture: Results of the Saitama Prefecture Quarterly Business Trend Survey (January-March 2026 period) and the Establishment of the "Saitama Prefecture Quarterly Business Trend Survey Data Site"

1. About Saitama Prefecture Quarterly Business Trend Survey (January-March 2026 period) Saitama Prefecture conducts a quarterly business trend survey targeting 2,200 small and medium-sized enterprises within the prefecture. The results of the survey for the January-March 2026 period (as of March 1, 2026) have been compiled. In addition to the regular survey on business sentiment, this quarter also included surveys on "price pass-through" and "status of efforts towards DX."

<Key Points of Regular Survey Results> Business Sentiment of Small and Medium-sized Enterprises in the Prefecture "Business sentiment among SMEs in the prefecture shows signs of recovery." "Prospects show signs of improvement." ・ The business sentiment DI* for all industries was -37.6, a decrease of 0.4 points compared to the previous quarter, worsening for the first time in three quarters. ・ For the manufacturing industry, it was -39.5, a decrease of 1.7 points compared to the previous quarter, worsening for the first time in three quarters. ・ For non-manufacturing industries, it was -36.2, an increase of 0.6 points compared to the previous quarter, improving for the third consecutive quarter. ・ The sales DI and cash flow DI for all industries worsened for the first time in two quarters, and the profitability DI worsened for the first time in four quarters. In addition, the capital expenditure implementation rate decreased for the first time in four quarters. ・ The future business sentiment DI for the next quarter (April-June 2026 period) was -12.7, an increase of 6.0 points compared to the previous quarter, improving for the first time in two quarters.

* An index calculated by subtracting the percentage of companies that responded "poor" from the percentage of companies that responded "good" regarding the business sentiment of the industry to which their company belongs among the surveyed companies.

<Reference: Transition of Business Sentiment DI>

<Key Points of Special Survey Results> ・ Regarding price pass-through, the percentage of companies that responded, "We are able to sufficiently negotiate (consult) prices with ordering companies" was 57.5%, an increase of 2.9 points from the previous survey. ・ On the other hand, the percentage of companies that responded, "We are not able to do so sufficiently" was 26.9%, a decrease of 1.8 points from the previous survey. ・ Regarding challenges in promoting DX, "lack of personnel to carry out DX" (40.0%) was the most common, followed by "lack of financial resources" (37.8%) and "don't know what or how to proceed" (24.7%). ・ Regarding support expected from the prefecture for promoting DX, "fund management/subsidies" (40.2%) was the most common, followed by "human resource development/supply" (18.5%) and "enhancement of consultation services" (17.5%).

<Outline of the Survey> Survey method: Written questionnaire survey, hearing survey for industry associations and individual companies Survey period: January-March 2026 period (as of March 1, 2026) Survey target industries and number of responses