Small and Medium Enterprise Business Conditions DI Decreased for the Fourth Consecutive Quarter - Results of the 184th Survey of Small and Medium Enterprise Business Conditions (April-June 2026) -

The Small and Medium Enterprise Agency (Director-General: Masaru Miyagawa, Headquarters: Minato-ku, Tokyo) has compiled the survey results (as of June 1, 2026) regarding the business conditions, sales, and ordinary profits of small and medium-sized enterprises for the April-June 2026 period (DI).

<Survey Results Overview>

(1) The DI for business conditions of small and medium-sized enterprises across all industries was ▲18.7 (down 1.1 points from the previous period), marking a decrease for the fourth consecutive quarter. By industry, it increased in the service sector and decreased in construction, manufacturing, retail, and wholesale.

(2) The DI for business conditions by industry showed a slight decrease in manufacturing to ▲16.6 (down 0.7 points from the previous period), the first decline in three quarters. In non-manufacturing industries, the service sector increased to ▲14.5 (up 0.9 points from the previous period), while construction decreased to ▲19.6 (down 8.3 points from the previous period), retail to ▲27.0 (down 0.5 points from the previous period), and wholesale to ▲15.2 (down 0.1 points from the previous period).

(3) Comments mentioning the Middle East situation and raw material conditions increased to approximately 2.5 times the previous period (January-March 2026), reaching 1,711 cases. The proportion of total comments by industry increased in all sectors, including manufacturing at 40% (up 21 points), construction at 44% (up 30 points), and services at 30% (up 15 points).

<Survey Overview>

Survey Date: June 1, 2026

Survey Method: In principle, conducted through interviews and listening by management advisors from Chambers of Commerce and Industry and liaison staff from Federations of Small and Medium-sized Enterprises nationwide.

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

Number of Companies Surveyed: 18,834 Number of Valid Responses: 17,734 Response Rate: 94.2%

<Survey Details>

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

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

[Attached Document] Key Points of the 184th Survey of Small and Medium Enterprise Business Conditions (April-June 2026)

d21609-1926-9c41f47d1f0b5478c3aa71bf8dc22cd4.pdf

<About the Survey of Small and Medium Enterprise Business Conditions>

The Small and Medium Enterprise Agency conducts a quarterly survey to grasp the business conditions of small and medium-sized enterprises and collect basic data for policy formulation. This survey, conducted with the cooperation of the National Federation of Chambers of Commerce and Industry, the Japan Chamber of Commerce and Industry, and the National Federation of Small and Medium-sized Enterprise Organizations, calculates business conditions by industry and region. It has been conducted for over 40 years since 1980, reflecting the reality of small and medium-sized enterprises in Japan, where approximately 80% are small businesses, and about 50% of those are sole proprietors.

<About the Organization for Small & Medium Enterprises and Regional Innovation (SMRJ)>

SMRJ is a policy implementation organization that aims to contribute to the development of Japan's economy by promoting innovation and regional economic revitalization for SMEs, small businesses, and startups aiming for autonomous development and continuity. To solve the management challenges of SMEs aiming for sustainable growth in response to changes in the business environment, SMRJ provides direct, hands-on support, develops human resources, operates mutual aid systems, offers various financial support and business opportunities, and cooperates in improving the support capabilities of related SME support organizations.