Business Condition DI for SMEs Declines for Three Consecutive Quarters - Results of the 183rd Survey on SME Business Conditions (Jan-Mar 2026) -

The Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SMRJ) (President: Tadashi Miyagawa; Headquarters: Minato-ku, Tokyo) has compiled the results (as of March 1, 2026) of the survey on SME business conditions, sales, and ordinary profits for the January-March 2026 quarter.

(1) The Business Condition DI for SMEs across all industries was -17.6 (a decrease of 0.1 points from the previous quarter), marking the third consecutive quarter of decline. By industry, it rose in manufacturing, retail, and wholesale, while it declined in construction and services. (2) By industry, the Business Condition DI for manufacturing was -15.9 (an increase of 1.9 points), marking the second consecutive quarter of growth. In non-manufacturing, it rose in retail (-26.5, +1.9 points) and wholesale (-15.1, +0.5 points), while it declined in construction (-11.3, -2.6 points) and services (-15.4, -2.2 points). (3) While the 'Sales Unit Price/Customer Unit Price DI (year-on-year)' for manufacturing remained at a higher level compared to non-manufacturing, the 'Inquiry DI (year-on-year)' for manufacturing rose for the second consecutive quarter. The 'Number of Customers DI (year-on-year)' in the non-manufacturing service sector has fallen by 25 points since the April-June 2023 quarter (9.5). Survey Date: March 1, 2026 Method: Interviews conducted by management consultants at Chambers of Commerce and Industry and information officers at SME associations. Target: SMEs as defined by the SME Basic Act. Sample Size: 18,825 companies; Valid Responses: 17,895; Response Rate: 95.1%.