SME Business Conditions Judgment DI Declines for the 3rd Consecutive Quarter ~Results of the 183rd Survey of Small and Medium Business Economy (January-March 2026)~

The Small and Medium Enterprise Agency (Chairman: Masaru Miyakawa, Headquarters: Minato-ku, Tokyo) has compiled the survey results (as of March 1, 2026) regarding the business conditions judgment, sales amount, and ordinary profit (DI) for small and medium-sized enterprises (SMEs) for the January-March 2026 period.

(1) The SME Business Conditions Judgment DI for all industries was -17.6 (a decrease of 0.1 percentage points from the previous period), declining for the third consecutive quarter. By industry, manufacturing, retail, and wholesale industries rose, while construction and service industries declined.

(2) By industry, the Business Conditions Judgment DI for the manufacturing industry was -15.9 (an increase of 1.9 percentage points from the previous period), rising for the second consecutive quarter. In the non-manufacturing sector, retail was -26.5 (an increase of 1.9 percentage points) and wholesale was -15.1 (an increase of 0.5 percentage points), both rising. Construction fell to -11.3 (a decrease of 2.6 percentage points) and services fell to -15.4 (a decrease of 2.2 percentage points).

(3) While the manufacturing industry's "Sales Price/Customer Unit Price DI (year-on-year)" remained at a high level compared to the non-manufacturing sector, the manufacturing industry's "Inquiry DI (year-on-year)" rose for the second consecutive quarter. In the non-manufacturing service sector, the "Number of Customers DI (year-on-year)" decreased by 25 points from the April-June 2023 quarter (9.5).

Survey Date: March 1, 2026

Survey Method: In principle, management advisors from Chambers of Commerce and Industry and information liaisons from the National Association of Small and Medium Enterprises Organizations visited and conducted interviews to gather information.

Survey Target: Small and medium-sized enterprises nationwide as defined by the Small and Medium-sized Enterprise Basic Law.

Number of Companies Surveyed: 18,825; Number of Valid Responses: 17,895; Valid Response Rate: 95.1%.

For details, please see [Appendix] and the following website.

URL https://www.smrj.go.jp/research_case/survey/index.html

【Appendix】Key Points of the 183rd Survey of Small and Medium Business Economy (January-March 2026)

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The Small and Medium Enterprise Agency (SME Support Agency) conducts this survey quarterly, in cooperation with the National Federation of Chambers of Commerce and Industry, the Japan Chamber of Commerce and Industry, and the National Association of Small and Medium Enterprises Organizations, to grasp the business conditions of SMEs and collect basic data for SME policy formulation. This survey, which has continued for over 40 years since 1980, reflects the reality of Japanese SMEs, with approximately 80% being small-scale businesses and about 50% of those being sole proprietors.