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

While the number of infections increased,seasonal demand was a positive factor

e-mail：keiki@mail.tdb.co.jp～ Digital demand such as DX, and expansion of rebound consumption,
will contribute to pushing up the economy hereafter. ～(Companies researched: 26,277; Valid responses: 11,935; Response rate: 45.4%;
Survey start date: May 2002)

By industry: Although the digital-related industry shows strong
performance, an increase in the number of infections was a negativefactor.

< Overview of August 2022: Slightly improved >The economic diffusion index (DI) in August 2022 was 41.4, up 0.1 from theprevious month, and improving for the first time in two months. The domestic
economy turned upward, albeit slightly, for the first time in two months,
through steady seasonal demand and increased digital-related demand.

By size: Improved for the first time in three months in all sizes, with brisk
DX-related demand.
By region: Improved in 24 prefectures, but on the other hand, worsenedin 22 prefectures. Regional polarization of business confidence.

< Future outlook: Remained generally flat >It is believed that the economy will gradually level off, albeit withsome inherent downward pressure, as the economy tries to return tonormal.

55
5045

39.2 39.9

41.5

43.143.9

41.2 39.9 40.4 40.8 41.2 41.4 41.3 41.4 41.4 41.5 41.4 41.7 42.0 42.0

43.643.7
42.6 43.0 43.1 43.3

403530250

After 3 months After 6 months
After 1 month

After 1 year

（Prediction→Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug202120222023
Projected future DI 39.2 39.9 41.5 43.1 43.9 41.2 39.9 40.4 40.8 41.2 41.4 41.3 41.4 41.4 41.5 41.4 41.7 42.0 42.0 42.6 43.0 43.1 43.3 43.6 43.7
Change from Aug.2022
0.0 0.1 0.0 0.3 0.6 0.6 1.2 1.6 1.7 1.9 2.2 2.3
Upper
42.3 42.7 43.0 43.5 44.0 44.3 45.1 45.6 45.9 46.2 46.7 46.9*: Economic DIs are calculated based on the structural ARIMA model, in which economic statistics are incorporated to the ARIMA model.
Lower
40.6 40.2 39.9 39.9 39.9 39.8 40.2 40.4 40.3 40.4 40.5 40.5

©TEIKOKUDATABANK,LTD

TDB Trends Research Aug 2022

1

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

PreviousMonthTotal

39.2 39.9 41.5 43.1 43.9 41.2 39.9 40.4 40.8 41.2 41.4 41.3 41.4

0.1

Large Firms

41.4 42.5 43.8 45.7 45.9 44.0 42.9 43.4 43.1 43.5 43.5 43.4 43.8

0.4

Small to Medium-sized Firms

38.8 39.4 41.0 42.5 43.5 40.6 39.3 39.8 40.3 40.7 41.0 40.8 41.0

0.2

Micro Firms

37.4 38.7 40.0 41.3 42.1 39.1 37.9 38.4 38.9 39.5 40.0 39.7 39.8

0.1

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

Previous
Month

Agriculture,Forestry,Fisheries

37.0 38.1 41.1 42.6 38.2 38.7 36.4 34.8 35.0 37.6 34.7 36.3 35.9

▲ 0.4

Finance39.7 41.5 43.0 43.3 43.8 41.9 41.6 42.5 41.1 42.7 42.3 41.9 41.7

▲ 0.2Construction

42.5 43.7 44.7 45.4 45.2 43.3 42.5 42.8 41.8 42.2 42.5 43.1 43.3

0.2

Real Estate

39.4 42.6 43.6 44.7 46.7 42.9 42.6 42.8 43.2 44.7 45.9 44.7 44.8

0.1

Food,BEWerages,Livestock Feed

32.8 34.1 38.1 39.6 40.8 35.4 33.4 34.2 36.4 37.6 37.8 36.7 36.1

▲ 0.6

Textile,Textile Products,Clothing

29.3 28.2 30.2 31.4 34.1 31.6 31.7 33.0 34.6 33.8 34.4 36.1 32.6

▲ 3.5

Construction Materials,Furniture,Ceramics,Stone and Clay Products

41.2 42.7 43.7 44.9 46.4 44.1 42.7 41.1 41.7 41.1 40.4 40.8 39.8

▲ 1.0Pulp, Paper and Paper Products

36.6 36.2 39.3 41.4 42.9 40.2 36.4 37.2 40.3 38.3 37.4 37.5 36.6

▲ 0.9

Publishing,Printing

25.6 27.1 29.4 30.2 32.1 28.6 29.5 29.6 30.7 30.3 29.7 29.1 29.6

0.5

Manufacturing Chemical

45.0 41.9 42.6 45.7 46.7 44.5 42.3 42.7 42.3 41.7 41.1 41.8 42.6

0.8Steel,Nonferrous Metals,Mining

45.1 43.8 44.2 45.9 46.4 44.6 43.8 42.6 42.1 40.9 41.2 42.9 42.7

▲ 0.2

General Machinery

46.6 46.2 47.2 47.8 49.1 47.7 46.7 46.7 45.9 46.9 46.3 46.3 46.2

▲ 0.1

Electrical Machinery

45.9 45.8 47.5 47.0 48.5 46.6 46.1 44.3 44.8 44.3 44.8 44.7 44.2

▲ 0.5

Transportation Machinery,Equipment

48.2 37.6 37.7 43.4 45.6 41.6 39.9 40.0 38.1 37.6 36.8 40.3 41.2

0.9

Precision Machinery,
Medical Instruments and Equipment

50.9 50.8 50.4 49.8 53.0 52.0 49.5 47.1 46.8 48.2 48.8 48.5 46.5

▲ 2.0

Other33.9 35.3 35.5 36.9 41.1 35.9 36.1 35.4 37.3 39.2 38.1 37.8 38.2

0.4

41.5 40.7 42.1 43.6 45.1 42.5 41.2 40.9 41.2 41.0 40.8 41.3 41.0

▲ 0.3

Food,BEWerages

29.1 29.8 33.0 36.9 38.2 32.7 30.1 32.6 36.2 37.3 37.1 37.0 35.6

▲ 1.4

Textile,Textile Products,Clothing

21.2 22.4 24.5 27.4 29.3 27.6 24.9 25.4 28.7 31.4 31.3 29.9 29.9

0.0

Construction Materials,Furniture,Ceramics,
Stone and Clay Products

37.7 39.6 39.9 42.6 42.4 40.0 39.7 40.5 38.6 38.1 38.3 38.6 38.5

▲ 0.1Paper Products,Stationery,Books

29.2 29.6 31.8 35.0 34.2 32.7 31.9 34.6 33.8 34.2 32.8 33.0 33.5

0.5

Chemical40.7 42.2 44.2 45.3 45.3 43.2 41.9 43.5 42.3 42.3 41.6 43.5 43.0

▲ 0.5

Recycled Resources

51.4 51.8 53.4 52.9 52.8 45.8 50.5 53.2 54.0 47.5 41.4 40.9 39.6

▲ 1.3

Steel,Nonferrous Metals,
Mining Products

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

0.0

Machinery,Equipment

41.3 41.8 42.6 44.4 44.7 42.8 42.4 41.9 42.5 42.0 42.9 43.1 42.6

▲ 0.5

Other33.0 34.4 37.8 39.7 40.1 36.3 33.7 35.5 37.3 37.8 38.1 37.7 37.7

0.036.6 37.6 39.1 41.3 41.8 39.0 37.7 38.6 39.2 39.4 39.4 39.5 39.2

▲ 0.3

Total

Wholesale.

Total©TEIKOKUDATABANK,LTDTDB Trends Research Aug 2022

2

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

PreviousMonthRetailFood,BEWerages

36.0 33.1 38.0 39.7 41.1 36.5 36.3 38.6 37.7 41.8 42.7 40.3 39.9

▲ 0.4

Textile,Textile Products,Clothing

21.4 21.5 27.9 34.1 40.0 31.8 23.8 30.6 33.6 33.9 33.6 37.7 33.6

▲ 4.1

Drugs,Sundries

33.3 34.6 45.8 37.5 38.4 36.0 32.1 36.8 32.1 38.9 40.1 37.1 41.9

4.8

Furniture

34.6 32.2 35.6 34.5 42.9 35.6 29.8 30.6 39.2 34.3 39.8 35.2 36.1

0.9

Electrical Household Appliances,
Information Machinery andEquipment

33.8 33.8 34.6 35.9 35.5 32.3 30.2 33.0 33.7 34.7 34.0 36.7 32.7

▲ 4.0

Motor Vehicles,Motor Vehicle Parts

36.8 37.2 35.9 37.8 36.5 35.0 33.5 34.7 35.1 37.1 36.4 32.4 35.9

3.5

Special Merchandise

32.6 31.7 32.8 33.5 36.0 33.3 30.9 29.9 31.3 33.1 34.3 33.2 34.7

1.5

Various Merchandise

27.3 33.0 35.9 38.0 37.5 36.2 32.6 34.0 36.4 39.9 37.8 40.2 38.0

▲ 2.2

Other

37.0 35.4 31.7 37.9 43.3 40.0 40.0 43.9 34.7 41.0 39.7 36.9 42.3

5.4

Total

32.7 32.6 34.8 36.0 37.7 34.4 31.9 33.3 34.0 36.4 36.7 35.7 36.3

0.6

Transportation,Warehousing

36.0 35.8 37.1 39.1 40.3 37.7 35.5 35.4 36.6 37.2 37.1 37.8 37.3

▲ 0.5

Restaurants

14.8 15.2 27.8 31.4 34.7 24.2 16.9 23.8 32.8 34.3 38.0 34.0 28.1

▲ 5.9

Postal,Telecommunications

39.6 41.7 50.0 40.5 41.7 46.7 50.0 48.5 50.0 53.0 56.0 47.0 47.9

0.9Electricity,Gas,Water,Heat

44.4 45.8 42.6 38.9 39.7 40.0 37.5 33.3 35.7 40.6 34.3 37.7 35.9

▲ 1.8

Leasing,Rentals

37.4 39.6 43.9 44.9 44.8 42.0 41.0 40.2 42.0 43.3 44.9 40.8 44.7

3.9Lodging, Hotels

10.0 10.4 22.6 30.2 29.5 12.9 12.8 18.1 28.3 33.0 33.3 30.3 38.0

7.7

Recreation

29.2 29.0 34.0 36.7 38.4 33.3 31.2 35.1 35.6 38.9 41.6 40.7 40.1

▲ 0.6

Broadcasting

38.9 39.2 49.1 48.1 46.9 45.8 47.6 44.4 43.9 43.3 41.7 43.0 38.3

▲ 4.7

Maintenance,Guarding,Testing

41.6 44.0 44.3 45.3 45.7 42.3 40.2 42.3 43.1 42.5 44.2 42.2 43.4

1.2Advertising

26.8 29.5 32.4 36.8 37.7 32.7 31.5 36.4 36.9 34.8 37.3 34.3 36.7

2.4Information

46.7 48.5 50.5 51.2 52.5 50.1 50.2 51.1 50.8 50.8 52.0 51.5 52.7

1.2

Labor Dispatching

38.4 41.9 39.7 44.3 43.3 45.1 41.5 44.4 45.7 47.6 45.7 46.5 49.8

3.3

Special Services

44.4 45.5 47.9 49.2 50.3 47.2 46.2 46.9 48.1 48.1 49.6 48.7 48.3

▲ 0.4

Medical,Welfare,Public Health41.1 41.4 42.8 45.7 43.2 42.4 41.0 42.5 44.5 44.4 43.5 42.5 41.2

▲ 1.3

Education

37.5 39.0 43.5 39.1 43.2 39.7 40.2 37.8 39.6 35.6 40.1 38.8 39.7

0.9

Other

34.7 39.2 40.6 41.7 42.4 39.3 36.9 39.3 42.1 42.7 42.8 42.4 41.2

▲ 1.2

39.1 41.1 43.6 45.3 46.1 42.8 41.4 43.1 44.5 44.8 45.9 44.4 45.4

1.0

35.3 35.6 38.0 39.6 40.5 36.3 37.3 38.7 36.8 38.1 35.6 36.6 38.3

1.7

ServiceTotal

Other

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

PreviousMonthHokkaido

38.0 38.5 40.8 40.8 41.1 38.6 37.0 36.5 37.9 38.9 40.1 41.0 40.2

▲ 0.8Tohoku

38.4 39.0 40.2 42.1 41.7 38.1 37.0 37.0 37.6 39.1 39.0 38.8 38.1

▲ 0.7

kitakanto

41.5 40.4 42.8 44.4 45.0 42.3 40.7 40.7 42.0 42.1 42.6 42.9 43.8

0.9

minamikanto

40.0 41.4 42.4 43.9 44.8 42.6 41.5 42.1 42.4 42.7 43.2 42.6 43.3

0.7

Hokuriku

39.1 40.4 41.2 42.6 43.6 40.9 39.2 39.2 39.9 40.6 40.5 41.5 40.8

▲ 0.7

Tokai40.0 39.1 40.1 42.4 44.4 41.1 39.7 40.2 40.2 40.1 39.5 39.5 39.7

0.2Kinki

38.7 39.3 41.3 42.7 43.3 40.8 39.8 40.5 40.8 40.9 40.9 40.9 41.1

0.2

Chugoku38.2 38.7 41.2 42.3 42.9 40.7 40.0 40.7 39.8 40.6 41.1 41.3 40.9

▲ 0.4

Shikoku36.9 38.3 39.0 41.8 43.2 39.3 37.1 38.9 38.1 38.7 38.4 38.3 37.7

▲ 0.6

Kyushu37.4 39.1 42.0 44.3 44.5 41.3 39.5 40.9 41.5 41.6 42.2 41.5 41.3

▲ 0.2

©TEIKOKUDATABANK,LTDTDB Trends Research Aug 20223

Appendix

1.Research Subjects(Companies researched: 26,277; Valid
responses: 11,935; Response rate: 45.4%)
1.Region

579

Hokkaido

Tokai807
898

TohokukitaKanto

Kinki
Chugoku

3,490611

minamikanto
Hokuriku

1,327
2,026
805

Kyushu

383
1,009

Total

11,935

Shikoku

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

154

Food,Beverages

Finance180

Textile,Textile Products,Clothing

57

Drugs,Sundries

35

Furniture

18

Construction

1,913

Real Estate

412
Food,Beverages,Livestock Feed

360

Textile,Textile Products,Clothing

111

Motor Vehicles,Motor Vehicle Parts

111

Construction Materials,Furniture,Ceramics,Stone and Clay Products

237

Special Merchandise

201

98

Various Merchandise

50

Pulp, Paper and Paper Products

174

Publishing,Printing

415

Manufacturing Chemical（3,015）

Wholesale（2,805）

Retail（641）101Electrical Household Appliances,Information Machinery and Equipment

55

13

Others516

Transportation,Warehousing

Steel,Nonferrous Metals,Mining

550

Restaurants

General Machinery482

Telecommunications

128

Electrical Machinery

324

Electricity,Gas,Water,Heat

Transportation Machinery,Equipment

813

110

Leasing,Rentals

116

Precision Machinery,Medical Instruments and Equipment

72

Lodging, Hotels

83

Others82

Recreation

81

Food,Beverages

369

Textile,Textile Products,Clothing

171

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

Service（2,252）

20

Broadcasting
Maintenance,Guarding,Testing

225

327

Advertising

103

95

Information

690

284

Labor Dispatching

97

37

Special Services

336
106

Steel,Nonferrous Metals,Mining Products

295

Medical,Welfare,Public Health

Machinery,Equipment901

Education

Others326

Others39207
47

OthersTotal

3.SizeLarge Firms

1,912

16.0%

Small to Medium-sized Firms

10,02384.0%

micro Firms

3,782

31.7%

Total11,935 100.0%©TEIKOKUDATABANK,LTD

11,935

TDB Trends Research Aug 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 Aug 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 25,000 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.

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

goodfairly goodneither good nor bad

fairly badbadvery bad

points6543210

number of responses
for each category

N6N5N4N3N2N1N0

Economic DI＝

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

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

N×16×

16× 100× 100©TEIKOKUDATABANK,LTDTDB Trends Research Aug 20225