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

Domestic economy worsened, albeit slightly,
for the first time in five months

e-mail：keiki@mail.tdb.co.jp～ Amid wave of price hikes, additional blow by rapid increase in people infected ～(Companies researched: 25,723; Valid responses: 11,503; Response rate: 44.7%;
Survey start date: May 2002)

By industry: Downward pressure on services targeted at individuals due
to rebound of COVID-19.

< Overview of July 2022: Worsening slightly >The economic diffusion index (DI) in July 2022 was 41.3, down 0.1 from theprevious month, worsening for the first time in five months. The domestic
economy worsened, albeit slightly, for the first time in five months, being
affected by consumer spending-related downward pressure due to increases inpeople infected, although seasonal demand appeared in some parts.

By size: Worsened for the first time in five months in SMEs and smallsized enterprises.
By region: Polarized, with improvement in four regions, and worsening infour regions. Sluggish growth due to postponed travel support measures.

< Future outlook: Generally flat trend, while downward pressure increases >It is believed that the economy will gradually level off, whiledownward pressure increases.

5550
4540.739.239.9

43.8
43.143.9
42.642.943.143.2
41.5
41.239.940.440.841.241.441.340.941.1

44.945.0
44.2 44.3 44.5403530After 3 months After 6 months
After 1 month

After 1 year

（Prediction→July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July
202120222023
Projected future DI 40.7 39.2 39.9 41.5 43.1 43.9 41.2 39.9 40.4 40.8 41.2 41.4 41.3 40.9 41.1 42.6 42.9 43.1 43.2 43.8 44.2 44.3 44.5 44.9 45.0
Change from July.2022-0.4 -0.2 1.3 1.6 1.8 1.9 2.5 2.9 3.0 3.2 3.6 3.7
Upper
41.7 42.4 44.2 44.7 45.2 45.4 46.3 46.8 47.1 47.4 47.9 48.2*: Economic DIs are calculated based on the structural ARIMA model, in which economic statistics are incorporated to the ARIMA model.
Lower
40.0 39.9 41.1 41.1 41.1 40.9 41.4 41.6 41.6 41.6 41.8 41.8025©TEIKOKUDATABANK,LTDTDB Trends Research July 2022

1

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

PreviousMonthTotal

40.7 39.2 39.9 41.5 43.1 43.9 41.2 39.9 40.4 40.8 41.2 41.4 41.3

▲ 0.1

Large Firms

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

▲ 0.1

Small to Medium-sized Firms

40.2 38.8 39.4 41.0 42.5 43.5 40.6 39.3 39.8 40.3 40.7 41.0 40.8

▲ 0.2

Micro Firms

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

▲ 0.3

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

Previous
Month

Agriculture,Forestry,Fisheries

38.5 37.0 38.1 41.1 42.6 38.2 38.7 36.4 34.8 35.0 37.6 34.7 36.3

1.6

Finance42.8 39.7 41.5 43.0 43.3 43.8 41.9 41.6 42.5 41.1 42.7 42.3 41.9

▲ 0.4

Construction

42.7 42.5 43.7 44.7 45.4 45.2 43.3 42.5 42.8 41.8 42.2 42.5 43.1

0.6

Real Estate

41.8 39.4 42.6 43.6 44.7 46.7 42.9 42.6 42.8 43.2 44.7 45.9 44.7

▲ 1.2

Food,BEWerages,Livestock Feed35.5 32.8 34.1 38.1 39.6 40.8 35.4 33.4 34.2 36.4 37.6 37.8 36.7

▲ 1.1

Textile,Textile Products,Clothing

31.0 29.3 28.2 30.2 31.4 34.1 31.6 31.7 33.0 34.6 33.8 34.4 36.1

1.7

Construction Materials,Furniture,Ceramics,Stone and Clay Products

42.5 41.2 42.7 43.7 44.9 46.4 44.1 42.7 41.1 41.7 41.1 40.4 40.8

0.4Pulp, Paper and Paper Products

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

0.1

Publishing,Printing

27.4 25.6 27.1 29.4 30.2 32.1 28.6 29.5 29.6 30.7 30.3 29.7 29.1

▲ 0.6

Manufacturing Chemical

46.3 45.0 41.9 42.6 45.7 46.7 44.5 42.3 42.7 42.3 41.7 41.1 41.8

0.7

Steel,Nonferrous Metals,Mining

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

1.7

General Machinery

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

0.0Electrical Machinery

46.8 45.9 45.8 47.5 47.0 48.5 46.6 46.1 44.3 44.8 44.3 44.8 44.7

▲ 0.1

Transportation Machinery,Equipment

50.6 48.2 37.6 37.7 43.4 45.6 41.6 39.9 40.0 38.1 37.6 36.8 40.3

3.5

Precision Machinery,
Medical Instruments and Equipment

50.5 50.9 50.8 50.4 49.8 53.0 52.0 49.5 47.1 46.8 48.2 48.8 48.5

▲ 0.3

Other37.6 33.9 35.3 35.5 36.9 41.1 35.9 36.1 35.4 37.3 39.2 38.1 37.8

▲ 0.3

Total

Wholesale.

42.7 41.5 40.7 42.1 43.6 45.1 42.5 41.2 40.9 41.2 41.0 40.8 41.3

0.5

Food,BEWerages

31.3 29.1 29.8 33.0 36.9 38.2 32.7 30.1 32.6 36.2 37.3 37.1 37.0

▲ 0.1

Textile,Textile Products,Clothing

22.8 21.2 22.4 24.5 27.4 29.3 27.6 24.9 25.4 28.7 31.4 31.3 29.9

▲ 1.4

Construction Materials,Furniture,Ceramics,
Stone and Clay Products

37.8 37.7 39.6 39.9 42.6 42.4 40.0 39.7 40.5 38.6 38.1 38.3 38.6

0.3

Paper Products,Stationery,Books

31.2 29.2 29.6 31.8 35.0 34.2 32.7 31.9 34.6 33.8 34.2 32.8 33.0

0.2

Chemical

42.4 40.7 42.2 44.2 45.3 45.3 43.2 41.9 43.5 42.3 42.3 41.6 43.5

1.9

Recycled Resources

53.7 51.4 51.8 53.4 52.9 52.8 45.8 50.5 53.2 54.0 47.5 41.4 40.9

▲ 0.5Steel,Nonferrous Metals,
Mining Products

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

▲ 0.4

Machinery,Equipment

43.1 41.3 41.8 42.6 44.4 44.7 42.8 42.4 41.9 42.5 42.0 42.9 43.10.2

Other36.6 33.0 34.4 37.8 39.7 40.1 36.3 33.7 35.5 37.3 37.8 38.1 37.7

▲ 0.438.3 36.6 37.6 39.1 41.3 41.8 39.0 37.7 38.6 39.2 39.4 39.4 39.5

0.1

Total

©TEIKOKUDATABANK,LTDTDB Trends Research July 2022

2

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

PreviousMonth

RetailFood,BEWerages

37.5 36.0 33.1 38.0 39.7 41.1 36.5 36.3 38.6 37.7 41.8 42.7 40.3

Textile,Textile Products,Clothing

25.0 21.4 21.5 27.9 34.1 40.0 31.8 23.8 30.6 33.6 33.9 33.6 37.7

4.1Drugs,Sundries

32.5 33.3 34.6 45.8 37.5 38.4 36.0 32.1 36.8 32.1 38.9 40.1 37.1

▲ 3.0

Furniture

36.9 34.6 32.2 35.6 34.5 42.9 35.6 29.8 30.6 39.2 34.3 39.8 35.2

▲ 4.6

Electrical Household Appliances,
Information Machinery andEquipment

37.7 33.8 33.8 34.6 35.9 35.5 32.3 30.2 33.0 33.7 34.7 34.0 36.7

2.7

Motor Vehicles,Motor Vehicle Parts

40.5 36.8 37.2 35.9 37.8 36.5 35.0 33.5 34.7 35.1 37.1 36.4 32.4

▲ 4.0

Special Merchandise

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

▲ 1.1

Various Merchandise

35.6 27.3 33.0 35.9 38.0 37.5 36.2 32.6 34.0 36.4 39.9 37.8 40.2

2.4

Other

35.7 37.0 35.4 31.7 37.9 43.3 40.0 40.0 43.9 34.7 41.0 39.7 36.9

▲ 2.8

35.4 32.7 32.6 34.8 36.0 37.7 34.4 31.9 33.3 34.0 36.4 36.7 35.7

▲ 1.0Total▲ 2.4

Transportation,Warehousing

36.3 36.0 35.8 37.1 39.1 40.3 37.7 35.5 35.4 36.6 37.2 37.1 37.8

0.7

Restaurants

19.7 14.8 15.2 27.8 31.4 34.7 24.2 16.9 23.8 32.8 34.3 38.0 34.0

▲ 4.0

Postal,Telecommunications

42.9 39.6 41.7 50.0 40.5 41.7 46.7 50.0 48.5 50.0 53.0 56.0 47.0

▲ 9.0Electricity,Gas,Water,Heat

40.8 44.4 45.8 42.6 38.9 39.7 40.0 37.5 33.3 35.7 40.6 34.3 37.7

3.4

Leasing,Rentals

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

▲ 4.1

Lodging, Hotels

13.0 10.0 10.4 22.6 30.2 29.5 12.9 12.8 18.1 28.3 33.0 33.3 30.3

▲ 3.0

Recreation

34.8 29.2 29.0 34.0 36.7 38.4 33.3 31.2 35.1 35.6 38.9 41.6 40.7

▲ 0.9

Broadcasting

42.2 38.9 39.2 49.1 48.1 46.9 45.8 47.6 44.4 43.9 43.3 41.7 43.0

1.3

Maintenance,Guarding,Testing

41.9 41.6 44.0 44.3 45.3 45.7 42.3 40.2 42.3 43.1 42.5 44.2 42.2

▲ 2.0Advertising

27.5 26.8 29.5 32.4 36.8 37.7 32.7 31.5 36.4 36.9 34.8 37.3 34.3

▲ 3.0

Information

48.2 46.7 48.5 50.5 51.2 52.5 50.1 50.2 51.1 50.8 50.8 52.0 51.5

▲ 0.5

Labor Dispatching

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

0.8

Special Services

47.3 44.4 45.5 47.9 49.2 50.3 47.2 46.2 46.9 48.1 48.1 49.6 48.7

▲ 0.9

Medical,Welfare,Public Health42.1 41.1 41.4 42.8 45.7 43.2 42.4 41.0 42.5 44.5 44.4 43.5 42.5

▲ 1.0

Education

40.3 37.5 39.0 43.5 39.1 43.2 39.7 40.2 37.8 39.6 35.6 40.1 38.8

▲ 1.3

Other

37.4 34.7 39.2 40.6 41.7 42.4 39.3 36.9 39.3 42.1 42.7 42.8 42.4

▲ 0.441.5 39.1 41.1 43.6 45.3 46.1 42.8 41.4 43.1 44.5 44.8 45.9 44.4

▲ 1.5

34.7 35.3 35.6 38.0 39.6 40.5 36.3 37.3 38.7 36.8 38.1 35.6 36.6

1.0

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

Ratio to thePreviousServiceTotal

OtherMonthHokkaido

38.3 38.0 38.5 40.8 40.8 41.1 38.6 37.0 36.5 37.9 38.9 40.1 41.0

0.9

Tohoku40.0 38.4 39.0 40.2 42.1 41.7 38.1 37.0 37.0 37.6 39.1 39.0 38.8

▲ 0.2

kitakanto

42.7 41.5 40.4 42.8 44.4 45.0 42.3 40.7 40.7 42.0 42.1 42.6 42.9

0.3

minamikanto

41.0 40.0 41.4 42.4 43.9 44.8 42.6 41.5 42.1 42.4 42.7 43.2 42.6

▲ 0.6

Hokuriku

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

1.0Tokai

42.0 40.0 39.1 40.1 42.4 44.4 41.1 39.7 40.2 40.2 40.1 39.5 39.5

0.0

Kinki

40.3 38.7 39.3 41.3 42.7 43.3 40.8 39.8 40.5 40.8 40.9 40.9 40.9

0.0

Chugoku

39.0 38.2 38.7 41.2 42.3 42.9 40.7 40.0 40.7 39.8 40.6 41.1 41.3

0.2

Shikoku38.2 36.9 38.3 39.0 41.8 43.2 39.3 37.1 38.9 38.1 38.7 38.4 38.3

▲ 0.1

Kyushu40.5 37.4 39.1 42.0 44.3 44.5 41.3 39.5 40.9 41.5 41.6 42.2 41.5

▲ 0.7

©TEIKOKUDATABANK,LTDTDB Trends Research July 2022

3Appendix

1.Research Subjects(Companies researched: 25,723; Valid
responses: 11,503; Response rate: 44.7%)
1.Region

576

Hokkaido

Tokai769
874

TohokukitaKanto

Kinki
Chugoku

3,266
598

minamikanto
Hokuriku

1,327

1,978790

Kyushu

379
946

Total

11,503

Shikoku

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

164

Food,Beverages

91

Finance180

Textile,Textile Products,Clothing

53

Drugs,Sundries

35

Furniture

18

Construction

1,872

Real Estate

416
Food,Beverages,Livestock Feed

348

Textile,Textile Products,Clothing

108

Motor Vehicles,Motor Vehicle Parts

109

Construction Materials,Furniture,Ceramics,Stone and Clay Products

228

Special Merchandise

199

95

Various Merchandise

46

Pulp, Paper and Paper Products

175

Publishing,Printing

392

Manufacturing Chemical（2,929）

Wholesale（2,800）

Retail（624）Electrical Household Appliances,Information Machinery and Equipment

59

14

Others529

Transportation,Warehousing

Steel,Nonferrous Metals,Mining

520

Restaurants

General Machinery486

Telecommunications

Electrical Machinery

305

Electricity,Gas,Water,Heat

Transportation Machinery,Equipment

113

Leasing,Rentals

118

Precision Machinery,Medical Instruments and Equipment

77

Lodging, Hotels

49

Others82

Recreation

81

Food,Beverages386

Textile,Textile Products,Clothing

185

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

Service（1,943）

100
1119

Broadcasting
Maintenance,Guarding,Testing

198

316

Advertising

104

99

Information

490

265

Labor Dispatching

67

31

Special Services

318
104

Steel,Nonferrous Metals,Mining Products

285

Medical,Welfare,Public Health

Machinery,Equipment891

Education

Others342

Others40
225
46

OthersTotal

3.SizeLarge Firms

1,844

16.0%

Small to Medium-sized Firms

9,659

84.0%

micro Firms

3,669

31.9%

Total

11,503 100.0%

19©TEIKOKUDATABANK,LTD11,503

TDB Trends Research July 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 July 15 – 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 yen
orNo. 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 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 July 20225