TDB Trends Research (Nationwide, Research & Summary for October 2022)

Domestic economy improved for the third straight month～ With the yen at its lowest level in 32 years, tourism-related demand is picking up,
supported by National Travel Discount Program.～e-mail：keiki@mail.tdb.co.jp(Companies researched: 26,752; Valid responses: 11,632; Response rate: 43.5%;
Survey start date: May 2002)

By industry: Improved in eight industries. Tourism-related demand
improved greatly with the start of National Travel Discount Program.

< Trends in October 2022: Tendency toward improvement >The economic diffusion index (DI) in October 2022 was 42.6, up 0.7 points
from the previous month in its third consecutive month of improvement. It hasregained and exceeded its pre-pandemic level. The domestic economy showeda tendency toward improvement for the third straight month with risingdemand for personal services.

By size: Businesses of all scales saw their first improvement in twomonths, and the return of foot traffic is driving personal consumption.
By region: Improvement was seen in all ten regions for the first time in ayear. Tourism-related demand is giving a boost to regional economies.

< Future outlook: Continued trend toward gradual improvement >Service consumption and demand for DX are expected to expand, andthe outlook is toward gradual improvement.

55

50
45

41.5

43.1 43.9

41.2 39.9

41.9 42.6
40.4 40.8 41.2 41.4 41.3 41.4

43.1 43.3 43.5 43.6 43.6 43.6

44.0 44.1 44.1 44.6

44.8 44.9

4035After 3 months
After 1 month

After 6 months

After 1 year

30

0
25

（Prediction→）

Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct
2021
2022
2023
Projected future DI 41.5 43.1 43.9 41.2 39.9 40.4 40.8 41.2 41.4 41.3 41.4 41.9 42.6 43.1 43.3 43.5 43.6 43.6 43.6 44.0 44.1 44.1 44.6 44.8 44.9
Change from Oct.2022
0.5 0.7 0.9 1.0 1.0 1.0 1.4 1.5 1.5 2.0 2.2 2.3
Upper
43.9 44.6 45.0 45.4 45.6 45.9 46.4 46.7 46.9 47.5 47.8 48.1*: Theeconomic forecast DI is calculated using the Forecast Combination method of the results of the ARIMA model and the structural equation model.
Lower
42.2 42.1 41.9 41.8 41.5 41.4 41.6 41.5 41.4 41.7 41.7 41.7

©TEIKOKUDATABANK,LTD

TDB Trends Research Oct 2022

1

Economic Diffusion Index (Economic DI)1/2
Ratio to theOct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22

Previous
Month

Total

41.5 43.1 43.9 41.2 39.9 40.4 40.8 41.2 41.4 41.3 41.4 41.9 42.6

0.7

Large Firms

43.8 45.7 45.9 44.0 42.9 43.4 43.1 43.5 43.5 43.4 43.8 43.6 44.2

0.6

Small to Medium-sized Firms

41.0 42.5 43.5 40.6 39.3 39.8 40.3 40.7 41.0 40.8 41.0 41.6 42.3

0.7

Micro Firms

40.0 41.3 42.1 39.1 37.9 38.4 38.9 39.5 40.0 39.7 39.8 40.7 41.1

0.4

Ratio to theOct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22

Previous
Month

Agriculture,Forestry,Fisheries

41.1 42.6 38.2 38.7 36.4 34.8 35.0 37.6 34.7 36.3 35.9 35.8 36.4

0.6

Finance43.0 43.3 43.8 41.9 41.6 42.5 41.1 42.7 42.3 41.9 41.7 43.6 43.2

▲ 0.4

Construction

44.7 45.4 45.2 43.3 42.5 42.8 41.8 42.2 42.5 43.1 43.3 44.0 44.2

0.2

Real Estate

43.6 44.7 46.7 42.9 42.6 42.8 43.2 44.7 45.9 44.7 44.8 45.3 44.0

▲ 1.3

Food,BEWerages,Livestock Feed38.1 39.6 40.8 35.4 33.4 34.2 36.4 37.6 37.8 36.7 36.1 35.5 38.2

2.7

Textile,Textile Products,Clothing

30.2 31.4 34.1 31.6 31.7 33.0 34.6 33.8 34.4 36.1 32.6 36.2 35.7

▲ 0.5

Ceramics,Stone and Clay Products

43.7 44.9 46.4 44.1 42.7 41.1 41.7 41.1 40.4 40.8 39.8 40.2 40.9

0.7

Pulp, Paper and Paper Products

39.3 41.4 42.9 40.2 36.4 37.2 40.3 38.3 37.4 37.5 36.6 38.0 40.4

2.4

Publishing,Printing

29.4 30.2 32.1 28.6 29.5 29.6 30.7 30.3 29.7 29.1 29.6 30.0 31.8

1.8

Chemical

42.6 45.7 46.7 44.5 42.3 42.7 42.3 41.7 41.1 41.8 42.6 42.3 40.8

▲ 1.5

Steel,Nonferrous Metals,Mining

44.2 45.9 46.4 44.6 43.8 42.6 42.1 40.9 41.2 42.9 42.7 43.0 43.9

0.9

General Machinery

47.2 47.8 49.1 47.7 46.7 46.7 45.9 46.9 46.3 46.3 46.2 45.4 45.8

0.4Electrical Machinery

47.5 47.0 48.5 46.6 46.1 44.3 44.8 44.3 44.8 44.7 44.2 45.2 44.8

▲ 0.4

Transportation Machinery,Equipment

37.7 43.4 45.6 41.6 39.9 40.0 38.1 37.6 36.8 40.3 41.2 40.2 42.2

2.0

Medical Instruments and Equipment

50.4 49.8 53.0 52.0 49.5 47.1 46.8 48.2 48.8 48.5 46.5 46.2 46.1

▲ 0.1

Other

35.5 36.9 41.1 35.9 36.1 35.4 37.3 39.2 38.1 37.8 38.2 37.5 35.4

▲ 2.1

42.1 43.6 45.1 42.5 41.2 40.9 41.2 41.0 40.8 41.3 41.0 41.1 41.6

0.5

Food,BEWerages

33.0 36.9 38.2 32.7 30.1 32.6 36.2 37.3 37.1 37.0 35.6 35.8 37.4

1.6

Textile,Textile Products,Clothing

24.5 27.4 29.3 27.6 24.9 25.4 28.7 31.4 31.3 29.9 29.9 29.9 32.4

2.5

39.9 42.6 42.4 40.0 39.7 40.5 38.6 38.1 38.3 38.6 38.5 37.5 39.8

2.3

Construction Materials,Furniture,

Manufacturing

Precision Machinery,

Total

Construction Materials,
Furniture,Ceramics,
Stone and Clay Products

Wholesale.

Paper Products,Stationery,Books

31.8 35.0 34.2 32.7 31.9 34.6 33.8 34.2 32.8 33.0 33.5 34.5 37.1

2.6

Chemical44.2 45.3 45.3 43.2 41.9 43.5 42.3 42.3 41.6 43.5 43.0 43.4 42.6

▲ 0.8

Recycled Resources

53.4 52.9 52.8 45.8 50.5 53.2 54.0 47.5 41.4 40.9 39.6 47.0 46.3

▲ 0.7

Mining Products

41.6 43.2 45.2 42.3 40.5 41.1 40.3 40.0 39.7 39.3 39.3 39.8 39.7

▲ 0.1

Machinery,Equipment

42.6 44.4 44.7 42.8 42.4 41.9 42.5 42.0 42.9 43.1 42.6 43.3 44.1

0.8

Other

37.8 39.7 40.1 36.3 33.7 35.5 37.3 37.8 38.1 37.7 37.7 38.2 39.0

0.8

39.1 41.3 41.8 39.0 37.7 38.6 39.2 39.4 39.4 39.5 39.2 39.6 40.6

1.0

Steel,Nonferrous Metals,

Total©TEIKOKUDATABANK,LTD

TDB Trends Research Oct 2022

2

Economic Diffusion Index (Economic DI)2/2
Ratio to theOct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22

Previous
MonthRetailFood,BEWerages

38.0 39.7 41.1 36.5 36.3 38.6 37.7 41.8 42.7 40.3 39.9 40.2 39.6

Textile,Textile Products,Clothing

27.9 34.1 40.0 31.8 23.8 30.6 33.6 33.9 33.6 37.7 33.6 34.9 38.7

3.8

Drugs,Sundries

45.8 37.5 38.4 36.0 32.1 36.8 32.1 38.9 40.1 37.1 41.9 39.5 38.9

▲ 0.6

Furniture

35.6 34.5 42.9 35.6 29.8 30.6 39.2 34.3 39.8 35.2 36.1 40.0 37.8

▲ 2.2

Information Machinery and Equipment

34.6 35.9 35.5 32.3 30.2 33.0 33.7 34.7 34.0 36.7 32.7 37.1 35.1

▲ 2.0

Motor Vehicles,Motor Vehicle Parts

35.9 37.8 36.5 35.0 33.5 34.7 35.1 37.1 36.4 32.4 35.9 38.8 37.6

▲ 1.2

Special Merchandise

32.8 33.5 36.0 33.3 30.9 29.9 31.3 33.1 34.3 33.2 34.7 34.0 33.5

▲ 0.5

Various Merchandise

35.9 38.0 37.5 36.2 32.6 34.0 36.4 39.9 37.8 40.2 38.0 36.1 41.3

5.2

Other

31.7 37.9 43.3 40.0 40.0 43.9 34.7 41.0 39.7 36.9 42.3 32.1 36.5

4.4

34.8 36.0 37.7 34.4 31.9 33.3 34.0 36.4 36.7 35.7 36.3 36.7 36.8

0.1

37.1 39.1 40.3 37.7 35.5 35.4 36.6 37.2 37.1 37.8 37.3 38.2 40.7

2.5

Restaurants

27.8 31.4 34.7 24.2 16.9 23.8 32.8 34.3 38.0 34.0 28.1 31.8 39.0

7.2

Postal,Telecommunications

50.0 40.5 41.7 46.7 50.0 48.5 50.0 53.0 56.0 47.0 47.9 51.9 52.4

0.5

Electricity,Gas,Water,Heat

42.6 38.9 39.7 40.0 37.5 33.3 35.7 40.6 34.3 37.7 35.9 36.1 31.1

▲ 5.0

Leasing,Rentals

43.9 44.9 44.8 42.0 41.0 40.2 42.0 43.3 44.9 40.8 44.7 45.6 47.5

1.9

Lodging, Hotels

22.6 30.2 29.5 12.9 12.8 18.1 28.3 33.0 33.3 30.3 38.0 37.4 53.3

15.9

Recreation

34.0 36.7 38.4 33.3 31.2 35.1 35.6 38.9 41.6 40.7 40.1 42.2 45.0

2.8

Broadcasting

49.1 48.1 46.9 45.8 47.6 44.4 43.9 43.3 41.7 43.0 38.3 46.1 43.1

▲ 3.0

Maintenance,Guarding,Testing

44.3 45.3 45.7 42.3 40.2 42.3 43.1 42.5 44.2 42.2 43.4 42.8 42.8

0.0

Advertising32.4 36.8 37.7 32.7 31.5 36.4 36.9 34.8 37.3 34.3 36.7 39.3 40.9

1.6

Information

50.5 51.2 52.5 50.1 50.2 51.1 50.8 50.8 52.0 51.5 52.7 53.0 52.3

▲ 0.7

Labor Dispatching

39.7 44.3 43.3 45.1 41.5 44.4 45.7 47.6 45.7 46.5 49.8 47.4 48.8

1.4

Special Services

47.9 49.2 50.3 47.2 46.2 46.9 48.1 48.1 49.6 48.7 48.3 49.4 49.0

▲ 0.4

Medical,Welfare,Public Health42.8 45.7 43.2 42.4 41.0 42.5 44.5 44.4 43.5 42.5 41.2 41.7 43.2

1.5

Education

43.5 39.1 43.2 39.7 40.2 37.8 39.6 35.6 40.1 38.8 39.7 43.7 42.1

▲ 1.6

40.6 41.7 42.4 39.3 36.9 39.3 42.1 42.7 42.8 42.4 41.2 42.8 43.3

0.5

43.6 45.3 46.1 42.8 41.4 43.1 44.5 44.8 45.9 44.4 45.4 46.3 47.1

0.8

38.0 39.6 40.5 36.3 37.3 38.7 36.8 38.1 35.6 36.6 38.3 37.2 37.9

0.7Electrical Household Appliances,

Total

Transportation,Warehousing

Service

Other
Total

Other

▲ 0.6

Ratio to theOct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22

PreviousMonthHokkaido

40.8 40.8 41.1 38.6 37.0 36.5 37.9 38.9 40.1 41.0 40.2 40.7 41.2

0.5

Tohoku40.2 42.1 41.7 38.1 37.0 37.0 37.6 39.1 39.0 38.8 38.1 39.3 39.9

0.6

kitakanto

42.8 44.4 45.0 42.3 40.7 40.7 42.0 42.1 42.6 42.9 43.8 42.5 43.7

1.2

minamikanto

42.4 43.9 44.8 42.6 41.5 42.1 42.4 42.7 43.2 42.6 43.3 43.6 43.8

0.2

Hokuriku

41.2 42.6 43.6 40.9 39.2 39.2 39.9 40.6 40.5 41.5 40.8 41.7 42.3

0.6

Tokai

40.1 42.4 44.4 41.1 39.7 40.2 40.2 40.1 39.5 39.5 39.7 40.4 41.1

0.7

Kinki

41.3 42.7 43.3 40.8 39.8 40.5 40.8 40.9 40.9 40.9 41.1 41.5 42.3

0.8

Chugoku

41.2 42.3 42.9 40.7 40.0 40.7 39.8 40.6 41.1 41.3 40.9 41.8 42.8

1.0

Shikoku

39.0 41.8 43.2 39.3 37.1 38.9 38.1 38.7 38.4 38.3 37.7 38.7 40.3

1.6

Kyushu42.0 44.3 44.5 41.3 39.5 40.9 41.5 41.6 42.2 41.5 41.3 43.0 44.0

1.0

©TEIKOKUDATABANK,LTD

TDB Trends Research Oct 2022

3

Appendix

1.Research Subjects(Companies researched: 26,752; Valid
responses: 11,632; Response rate: 43.5%)
1.Region

Hokkaido
TohokukitaKantominamikanto
Hokuriku

557
780
848
3,435
593

Kyushu

1,300
2,002
791
379
947

Total

11,632

Tokai

Kinki
Chugoku
Shikoku

2.Industry (10 Industries 51 Lines of business)
Agriculture,Forestry,Fisheries

120

Food,Beverages

Finance169

Textile,Textile Products,Clothing

62

Drugs,Sundries

36

Furniture

15

Construction

1,833

Real Estate

411
Food,Beverages,Livestock Feed

334

Textile,Textile Products,Clothing

106

Motor Vehicles,Motor Vehicle Parts

105

Construction Materials,Furniture,Ceramics,Stone and Clay Products

221

Special Merchandise

212

97

Various Merchandise

42

Pulp, Paper and Paper Products

Manufacturing（2,848）Wholesale（2,735）Retail（649）

114Electrical Household Appliances,Information Machinery and Equipment

Publishing,Printing

156

Chemical

391

Transportation,Warehousing

508

Steel,Nonferrous Metals,Mining

508

Restaurants

97

General Machinery

468

Telecommunications

Electrical Machinery

308

Electricity,Gas,Water,Heat

Transportation Machinery,Equipment

107

Leasing,Rentals

72

Lodging, Hotels

Others80

Recreation

Food,Beverages

366

Textile,Textile Products,Clothing160

Construction Materials,Furniture,Ceramics,Stone and Clay Products
Paper Products,Stationery,Books
Chemical

16

OthersPrecision Machinery,Medical Instruments and Equipment

Recycled Resources

Service（2,315）

7
15
120
80
123
17

Broadcasting
Maintenance,Guarding,Testing

207

315

Advertising

141

101

Information

672

271

Labor Dispatching

96

36

Special Services

318
103

Steel,Nonferrous Metals,Mining Products

297

Medical,Welfare,Public Health

Machinery,Equipment861

Education

Others328

Others42277
44

OthersTotal

3.Size47

Large Firms

1,826

15.8%

Small to Medium-sized Firms

9,806

84.2%

micro Firms

3,685

31.7%

Total

11,632100.0%©TEIKOKUDATABANK,LTD

11,632

TDB Trends Research Oct 2022

4

2.Research Items

An economic DI of 50 is the point separating good and bad, so a DI over
50 means “good,” and below 50 means “bad.” (The numbers are rounded
off to one decimal place.) No weight is given according to a company's size,and calculations are made on the basis of “one company, one vote.”*Business Confidence (current, in 3 months, in 6 months, in 1 year)*Business Conditions (sales, purchasing and selling unit price, inventory, capacity
utilization ratio, number of employees, overtime work hours).Size Classification

3.Research Period and Methodology

Internet-based survey conducted Oct 18 – 31 2022

Industry

The explanation of the Economic Diffusion Index
Research Purpose/Researched Terms
TDB Economic Trend Research (started from May 2002) is a monthly
statistical survey conducted for over 26,000 nationwide corporations on theirgeneral business activities including the current condition and future outlookof the industry business performance and operating climate. The primary
purpose of such a survey is to assess the current state of Japan’s economy.
Selection of the Subject Corporations
Companies of all sizes in all domestic industries are eligible to participate in
the survey.

Manufacturing andOther Industries*
W holesale Trade
Retail Trade
Service**

Large Firm s

Sm all to Medium -Sized Firm s(Micro Firm s included)

Capital: More than 300 m illion yen
andNo. of Em ployee: Over 300
Capital: More than 100 m illion yen
andNo. of Em ployee: Over 100
Capital: More than 50 m illion yen
andNo. of Em ployee: Over 50
Capital: More than 50 m illion yen
andNo. of Em ployee: Over 100

Capital: Below 300 m illion yenor
No. of Em ployee: Below 300
Capital: Below 100 m illion yenor
No. of Em ployee: Below 100
Capital: Below 50 m illion yenor
No. of Em ployee: Below 50
Capital: Below 50 m illion yenor
No. of Em ployee: Below 100

Micro Firm s

No. of Em ployee: Below 20
No. of Em ployee: Below 5
No. of Em ployee: Below 5
No. of Em ployee: Below 5

Note1: Large Firm s refer to com panies that rank in the top 3% in term s of sales volum e according to the type of business, am ong sm all to m idium -sizedcorporations excluding m icro firm s, which are defined in Sm all and Medium Enterprises Basic Act.
Note2: Sm all to Medium -Sized Firm s refer to com panies that rank in the bottom 50% in term s of sales volum e according to the type of business, am ong
those not categorized as sm all to m idium -sized corporations in Sm all to Medium -Sized Enterprises Basic Act.

DI Calculation
The DI（Diffusion Index）is calculated by multiplying the number of responses
for each assessment category by the number given in parentheses in thetable below, to a seven-level assessment rated by companies.
Selection category Extremely good

good

fairly goodneither good nor bad

fairly badbadvery badpoints

6

5

4

3

2

1

0

number of responses
for each category

N6

N5

N4

N3

N2

N1

N0

Economic DI＝

Total of (Points for each category × Number of responses for each category)∑≡

Number of valid responses N
6i≡0i × Ni

N

×

1
6

×

1
6

× 100

× 100

©TEIKOKUDATABANK,LTD

TDB Trends Research Oct 20225