The Japan Finance Corporation published the "National Small Enterprise Monthly Survey (June 2025 Results, July Outlook)" analyzing trends in sales, profitability, and business sentiment based on survey results from 1,500 small enterprises nationwide.
The June 2025 sales DI reached -7.6, expanding the negative range by 2.7 points from May (-4.9). The July outlook projects -11.7, indicating a further 4.1-point expansion in the negative range. By sector, manufacturing improved slightly from -14.3 to -12.0, while non-manufacturing deteriorated from -3.7 to -7.2. For July outlook, both sectors show negative projections with manufacturing at -27.9 and non-manufacturing at -9.6.
Key findings include:
- Widespread challenges across multiple business sectors
- Particular weakness in manufacturing sector outlook
- Continued pressure from rising costs and competitive pressures
- Regional variations in business performance
The profitability DI also showed deterioration, reflecting the impact of rising input costs and sluggish demand. Small enterprises face particular challenges due to limited pricing power and difficulty in passing through cost increases to customers. The survey results indicate the need for continued policy support to help small businesses navigate the challenging operating environment.