TDB Trends Research (Research & Summary for June 2021)

Domestic economy improved for the first time in
two months

e-mail：keiki@mail.tdb.co.jp～ Consumer spending-related sector also on an upswing due to spread ofvaccination ～(Companies researched: 23,737; Valid responses: 11,109; Response rate: 46.8%;
Survey start date: May 2002)< Overview of June 2021: Upswing again >The economic diffusion index (DI) in June 2021 was 39.1, up 1.6 points fromthe previous month, and improved for the first time in two months. In addition
to recovery of the overseas economy, with an upswing in the consumer
spending-related sector, the domestic economy improved for the first time intwo months.

By industry: The economy improved in all ten industries. The consumer
spending-related sector was on the upswing as the state of emergency
was lifted.
By size: The economy improved in all sizes for the first time in threemonths. Demand in a new field was generated.
By region: The economy improved in all ten regions for the first time inthree months. The regional economy was boosted by IT-related andexport.

< Future outlook: Moderate upswing >Although the movement in the number of those infected is a matter of concern,
the economy is expected to improve at a moderate pace.

5045403530

27.6

29.1 29.7

31.6

33.8

35.4 35.0

33.9

35.8

38.0 38.3 37.5 39.1

41.2
39.6 40.4

42.0 42.6 43.2

43.7 44.2 44.7

44.9 45.2 45.7

After 1 year
After 6 months
After 1 month

After 3 months

25200（Prediction→）

Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun2020
2021
2022
Projected future DI
27.6 29.1 29.7 31.6 33.8 35.4 35.0 33.9 35.8 38.0 38.3 37.5 39.1 39.6 40.4 41.2 42.0 42.6 43.2 43.7 44.2 44.7 44.9 45.2 45.7
Change from June.2021
0.5 1.3 2.1 2.9 3.5 4.1 4.6 5.1 5.6 5.8 6.1 6.6
Upper
40.4 41.6 42.7
43.7
44.6
45.4 46.0 46.7 47.3 47.7 48.2 48.8*: Economic DIs are calculated based on the structural ARIMA model, in which economic statistics are incorporated
to theARIMA
model.
Lower38.8 39.2 39.7 40.2 40.6 41.0 41.3 41.7 42.0 42.1 42.3 42.7

©TEIKOKUDATABANK,LTD

TDB Trends Research June 2021

1

Economic Diffusion Index (Economic DI)1/2
Ratio to theJun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

PreviousMonthTotal

27.6 29.1 29.7 31.6 33.8 35.4 35.0 33.9 35.8 38.0 38.3 37.5 39.1

1.6

Large Firms

30.1 31.7 32.4 33.9 36.4 37.6 37.4 36.3 38.2 40.2 40.8 40.2 41.9

1.7

Small to Medium-sized Firms

27.0 28.5 29.1 31.1 33.3 34.9 34.5 33.4 35.3 37.5 37.7 36.9 38.5

1.6

Micro Firms

27.8 29.4 30.0 32.0 33.9 35.2 34.2 32.8 34.7 36.7 36.3 35.6 37.1

1.5

Ratio to theJun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

Previous
Month

Agriculture,Forestry,Fisheries

29.6 31.4 31.0 30.3 34.4 38.7 35.4 30.9 33.8 35.0 37.5 37.7 39.1

1.4Finance32.4 31.5 32.6 35.3 38.3 37.7 35.6 36.1 38.3 39.2 38.3 39.5 41.7

2.2

Construction

36.3 37.5 38.4 40.4 41.1 41.8 40.9 39.4 40.6 41.6 41.4 40.0 41.6

1.6

Real Estate29.2 32.5 33.1 35.6 36.4 36.8 36.4 35.5 38.3 40.6 40.8 39.4 40.9

1.5Food,BEWerages,Livestock Feed27.2 29.6 30.5 32.0 34.2 36.0 32.5 30.7 30.8 34.4 35.2 33.6 34.0

0.4

Textile,Textile Products,Clothing

17.9 19.8 20.3 23.5 24.7 26.8 26.1 24.5 26.0 26.8 28.7 29.2 29.3

0.1

Ceramics,Stone and Clay Products

28.1 28.3 29.8 31.3 35.1 35.4 36.0 37.3 37.2 37.8 39.3 38.6 40.1

1.5Pulp, Paper and Paper Products

19.3 21.0 22.9 24.1 26.2 29.2 29.3 27.6 29.4 33.0 34.3 33.5 34.9

1.4Publishing,Printing

16.0 15.8 18.8 20.4 21.9 22.7 21.8 20.2 22.2 26.0 27.2 24.2 27.1

2.9

Chemical25.9 27.3 27.8 31.1 34.4 37.7 39.3 38.0 40.9 43.3 44.2 44.3 44.5

0.2Steel,Nonferrous Metals,Mining

20.8 22.3 23.6 25.4 29.2 33.1 34.3 33.9 37.0 39.3 40.5 39.9 43.4

3.5General Machinery

23.5 24.6 25.0 26.5 29.1 31.7 33.5 33.6 36.9 41.2 42.1 42.2 43.7

1.5

Electrical Machinery

27.0 27.5 27.7 28.9 33.0 34.8 35.5 36.1 39.6 42.6 43.2 42.8 45.0

2.2

Transportation Machinery,Equipment

18.1 21.2 24.2 27.8 34.9 36.3 40.1 40.1 40.3 45.3 45.2 45.3 47.1

1.8

Medical Instruments and Equipment

28.6 28.1 29.6 30.2 32.7 35.5 37.1 37.9 42.4 44.6 45.6 48.7 49.1

0.4

Other

23.9 25.2 22.8 26.3 29.0 29.6 31.9 31.5 31.4 34.1 35.3 33.0 34.1

1.1

23.6 24.9 25.9 27.8 31.0 33.3 33.9 33.4 35.6 38.5 39.5 39.0 40.6

1.6Food,BEWerages

24.5 27.3 27.2 30.2 32.0 31.6 29.5 26.8 29.2 30.7 30.1 29.4 30.7

1.3

Textile,Textile Products,Clothing

15.8 18.2 18.0 19.4 22.6 22.3 22.7 21.2 19.8 23.9 23.1 21.7 22.5

0.8

29.6 30.2 30.4 31.7 33.9 35.9 36.1 34.7 34.8 36.7 37.2 36.5 36.3

▲ 0.2

Paper Products,Stationery,Books

19.0 21.9 23.2 24.0 26.9 26.7 28.3 26.3 29.3 32.2 32.4 30.6 31.4

0.8

Chemical27.6 29.2 29.5 30.1 32.3 36.1 35.7 34.3 37.7 39.1 40.9 40.7 42.0

1.3

Recycled Resources

23.8 24.5 27.8 30.2 32.9 38.7 44.4 45.6 42.4 45.4 55.1 53.4 52.0

▲ 1.4

Mining Products

24.0 24.5 25.3 26.4 30.5 32.1 34.0 32.6 33.4 36.0 37.2 37.5 38.7

1.2

Machinery,Equipment

27.4 29.0 28.6 30.6 33.1 34.6 34.4 34.6 36.7 39.5 40.1 39.0 40.7

1.7

Other

23.1 25.1 25.4 27.6 30.6 33.0 31.6 29.0 31.3 34.4 34.1 32.2 35.5

3.3

25.3 27.0 27.1 28.9 31.5 33.0 32.8 31.6 33.3 35.8 36.2 35.3 36.8

1.5

Construction Materials,Furniture,

Manufacturing

Precision Machinery,

Total

Construction Materials,
Furniture,Ceramics,
Stone and Clay Products

Wholesale

Steel,Nonferrous Metals,

Total.
©TEIKOKUDATABANK,LTD

TDB Trends Research June 2021

2

Economic Diffusion Index (Economic DI)2/2
Ratio to theJun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

PreviousMonthRetailFood,BEWerages

30.8 30.7 29.1 34.0 38.8 37.0 34.6 33.8 33.1 34.1 32.8 32.6 34.9

2.3

Textile,Textile Products,Clothing

23.6 24.7 24.0 19.9 27.8 23.7 22.0 22.7 21.4 23.3 25.0 21.2 20.3

▲ 0.9

Drugs,Sundries

32.7 32.7 31.3 32.6 33.3 29.8 31.3 30.2 32.5 31.1 35.8 29.3 31.4

2.1Furniture31.7 40.0 38.9 38.5 37.5 38.9 35.4 34.4 36.7 38.9 42.7 40.6 39.8

▲ 0.8

Information Machinery and Equipment

33.8 29.8 30.5 30.6 34.2 33.3 29.5 28.3 36.3 34.4 37.8 30.8 35.8

5.0

Motor Vehicles,Motor Vehicle Parts

25.4 29.3 29.3 32.4 34.6 40.2 37.2 35.7 37.6 37.0 38.3 38.6 40.7

2.1

Special Merchandise

27.7 30.2 30.0 31.6 33.9 33.3 34.7 32.6 35.5 35.9 34.6 34.5 34.8

0.3

Various Merchandise

34.5 40.9 36.9 37.0 37.6 37.3 39.2 38.7 36.2 37.3 32.2 31.1 33.0

1.9

Other

31.8 26.7 25.9 33.3 33.3 34.8 33.3 30.3 33.3 35.0 40.5 25.0 33.3

8.3

29.1 31.0 30.3 32.1 34.8 35.0 34.2 32.9 34.5 34.9 34.7 33.1 34.5

1.4

21.5 24.2 25.4 28.1 30.1 32.5 31.5 30.0 31.7 33.9 34.5 33.7 34.5

0.8Electrical Household Appliances,

Total

Transportation,Warehousing

ServiceRestaurants

13.8 13.7 12.7 14.5 18.2 21.0 15.3 10.3 12.8 18.9 14.9 13.0 20.5

7.5

Postal,Telecommunications

43.3 41.7 42.6 46.7 41.7 47.2 38.9 46.3 38.1 43.8 38.9 40.5 27.8

▲ 12.7

Electricity,Gas,Water,Heat

34.4 34.9 42.5 42.5 40.4 40.0 38.6 42.5 39.5 47.1 40.4 41.2 45.0

3.8

Leasing,Rentals

30.2 31.4 32.7 34.5 34.9 37.5 36.2 33.5 32.8 35.0 35.4 35.0 38.1

3.1

Lodging, Hotels

4.8

11.6

6.0

Recreation

11.5 17.5 22.9 22.4 23.7 29.0 27.0 24.0 25.8 33.1 25.8 29.5 29.2

▲ 0.3

Broadcasting

26.7 25.6 34.5 33.3 34.4 38.6 42.2 36.3 42.6 51.0 42.7 42.7 42.2

▲ 0.5

Maintenance,Guarding,Testing

29.9 33.2 34.1 36.5 38.5 38.5 38.6 36.3 37.5 40.4 39.2 40.8 42.7

1.9

Advertising

14.3 19.0 18.0 20.4 21.1 22.3 22.5 20.2 24.7 26.5 25.6 23.4 27.5

4.1

Information

35.8 37.2 37.9 38.9 40.1 41.6 41.2 41.3 43.6 45.5 45.2 44.9 46.8

1.9

Labor Dispatching

25.3 24.6 25.4 26.7 29.2 34.3 31.5 31.6 33.6 34.1 35.8 35.5 36.2

0.7

Special Services

35.0 36.7 36.1 40.0 40.7 42.5 41.0 38.8 42.9 43.6 43.5 41.5 43.4

1.9

Medical,Welfare,Public Health30.5 29.9 31.0 31.4 33.6 34.9 34.8 32.7 34.7 37.1 39.1 39.2 41.2

2.0

Education

28.0 29.5 31.7 34.0 34.7 34.0 34.0 33.3 34.0 32.1 35.7 37.1 38.7

1.6

Other

26.6 28.7 28.4 31.1 31.6 31.4 32.6 30.9 34.2 34.5 34.8 35.2 35.8

0.6

29.4 31.2 31.8 33.9 35.1 36.8 35.7 33.9 36.5 38.5 37.9 37.5 39.7

2.2

27.1 29.3 28.8 31.5 28.2 29.4 30.8 29.5 30.5 34.4 34.1 33.3 35.5

2.2

Total

Other

5.1

6.0

12.4 27.2 28.8 11.9

3.4

4.4

10.9

8.6

5.6

Ratio to theJun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

PreviousMonth

Hokkaido

30.6 32.3 33.4 34.4 36.0 34.4 33.0 32.4 33.9 35.3 36.2 34.5 37.12.6Tohoku

28.5 29.7 30.4 32.6 34.4 36.0 35.4 33.8 35.4 36.8 38.0 37.7 39.3

1.6

kitakanto

26.2 27.1 28.0 30.6 33.2 36.6 35.9 34.9 37.2 39.2 39.7 39.5 41.2

1.7

minamikanto

28.4 29.7 30.4 32.3 34.2 35.3 35.2 34.0 35.9 38.4 38.7 38.4 39.8

1.4

Hokuriku

26.5 27.5 28.5 30.0 31.8 34.7 35.0 32.7 34.6 38.2 38.6 37.1 39.2

2.1

Tokai

25.3 27.0 27.7 30.3 32.6 35.6 35.3 34.1 36.1 38.4 38.9 37.9 39.4

1.5

Kinki

25.9 27.8 28.1 29.5 32.4 34.1 33.9 33.1 35.5 37.4 37.0 36.2 38.1

1.9

Chugoku27.2 29.4 29.7 32.0 34.3 35.5 34.8 34.5 36.2 37.7 37.8 36.0 37.9

1.9

Shikoku30.3 30.5 31.5 32.6 33.9 35.3 35.4 33.8 35.4 37.5 36.4 35.8 37.6

1.8

Kyushu29.7 32.5 31.8 34.2 36.9 37.7 36.9 35.3 37.0 39.0 39.5 37.5 38.3

0.8

©TEIKOKUDATABANK,LTD

TDB Trends Research June 2021

3

Appendix

1.Research Subjects(Companies researched: 23,737; Validresponses: 11,109; Response rate: 46.8%)
1.Region

Hokkaido
TohokukitaKantominamikanto
Hokuriku

537
698
834
3,454
576

Kyushu

1,171
1,824
656
396
963

Total

11,109TokaiKinki
Chugoku
Shikoku

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

72

Finance

116

Construction

1,802

Real Estate

362

Manufacturing（3,011）Wholesale（2,895）

Retail（467）

Food,Beverages

65

Textile,Textile Products,Clothing

37

Drugs,Sundries

26

Furniture

18

Electrical Household Appliances,Information Machinery and Equipment

40

Food,Beverages,Livestock Feed356

Textile,Textile Products,Clothing

115

Motor Vehicles,Motor Vehicle Parts

Construction Materials,Furniture,Ceramics,Stone and Clay Products

238

Special Merchandise

149

Pulp, Paper and Paper Products

104

Various Merchandise

47

Publishing,Printing

182

OthersChemical408

Transportation,Warehousing

506

Steel,Nonferrous Metals,Mining

519

Restaurants

69

General Machinery493

Telecommunications

Electrical Machinery

323

Electricity,Gas,Water,Heat

Transportation Machinery,Equipment

8620

109

Leasing,Rentals

126

Precision Machinery,Medical Instruments and Equipment

72

Lodging, Hotels

36

Others92

Recreation

65

Food,Beverages

392

Textile,Textile Products,Clothing

177

Construction Materials,Furniture,Ceramics,Stone and Clay Products

341

Advertising95

Paper Products,Stationery,Books

103

Information

490

Chemical

274

Labor Dispatching

65

33

Special Services

304
117

Recycled Resources

Service（1,831）

15

Broadcasting
Maintenance,Guarding,Testing

Steel,Nonferrous Metals,Mining Products

303

Medical,Welfare,Public Health

Machinery,Equipment921

Education

Others351

Others3147
Total

Large Firms

1,886

17.0%

Small to Medium-sized Firms

9,223

83.0%

micro Firms

3,320

29.9%

Total

11,109100.0%©TEIKOKUDATABANK,LTD

196

196

Others

3.Size77

11,109

TDB Trends Research June 20214

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.”

2.Research Items*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 June 17 – 30 2021

Industry
Manufacturing andOther Industries*

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 20,000 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 inthe survey.

Wholesale Trade
Retail Trade
Service**Large Firms

Small to Medium-Sized Firms(Micro Firms included)

Capital: More than 300 million yen
andNo. of Employee: Over 300
Capital: More than 100 million yen
andNo. of Employee: Over 100
Capital: More than 50 million yen
andNo. of Employee: Over 50
Capital: More than 50 million yen
andNo. of Employee: Over 100

Capital: Below 300 million yenor
No. of Employee: Below 300
Capital: Below 100 million yenor
No. of Employee: Below 100
Capital: Below 50 million yen
orNo. of Employee: Below 50
Capital: Below 50 million yenor
No. of Employee: Below 100

Micro Firms
No. of Employee: Below 20
No. of Employee: Below 5
No. of Employee: Below 5
No. of Employee: Below 5

Note1: Large Firms refer to companies that rank in the top 3% in terms of sales volume according to the type of business, among small to midium-sizedcorporations excluding micro firms, which are defined in Small and Medium Enterprises Basic Act.
Note2: Small to Medium-Sized Firms refer to companies that rank in the bottom 50% in terms of sales volume according to the type of business, among
those not categorized as small to midium-sized corporations in Small 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 badbad

very badpoints

6543210

number of responsesfor each category

N6N5N4N3N2N1N0

Economic DI＝Total of (Points for each category× Number of responses for each category) 1× × 100
Number of valid responsesN6∑≡6i ≡0i × Ni

N×1× 1006©TEIKOKUDATABANK,LTDTDB Trends Research June 20215