According to Teikoku Databank’s Business Conditions Survey, the Business Sentiment DI for August 2026 rose 1.0 point month on month to 44.6, improving for the fourth consecutive month. Growing demand for AI- and semiconductor-related products and seasonal factors supporting consumer spending lifted the overall reading.
The Business Sentiment DI for August 2026, based on a survey of 22,060 companies nationwide, rose to 44.6, improving for the fourth consecutive month. A recovery in sales and growing demand related to AI and semiconductors lifted a broad range of industries, while seasonal demand during the Obon holiday period, including travel home, travel and dining out, supported consumer spending. As the impact of yen depreciation eased, business sentiment improved across companies of all sizes.
By industry, manufacturing, transportation and warehousing lifted the overall reading, while retail and services also remained solid. In particular, increased orders in electrical machinery, machinery manufacturing, and transport machinery and equipment, together with demand related to AI, data centers and automobiles, contributed to the improvement.
By company size, large, medium-sized and small companies all improved for the third consecutive month. By region, 9 of the 10 regions improved, while Kyushu deteriorated due to the effects of the 2026 Kumamoto Earthquake. The outlook is for gradual improvement going forward.
Although downside risks to business conditions remain, the combination of demand related to AI and semiconductors and a recovery in consumer spending may continue to support business conditions.