Domestic economic conditions recovered in October 2026 for the first time in 2 months, with the Teikoku Databank monthly survey showing the Economy DI up 0.4 points from the previous month at 45.0. Broader demand related to AI increased orders, while improved production and equipment utilization and higher household income from wage increases also contributed.
Domestic economic conditions recovered in October 2026 for the first time in 2 months. In a monthly survey conducted by Teikoku Databank covering 22,025 companies nationwide, 10,169 valid responses were received, for a response rate of 46.2%, and the Economy DI was reported at 45.0, up 0.4 points from the previous month. Expanded demand related to AI boosted orders for semiconductor manufacturing equipment, machine tools and data center-related products.
By industry, 6 of 10 industries, including manufacturing, transport, warehousing and services, improved, while construction was flat and 3 industries, including real estate, deteriorated. By company size, large, medium-sized and small companies all improved. By region, 6 regions, including North Kanto and Kinki, improved, while 4 regions, including Hokkaido, deteriorated.
Looking ahead, government growth investment and continued demand related to AI and semiconductors are expected to support corporate activity. A recovery in personal consumption is also expected if wage increases continue and the consumption tax rate on food and beverages is reduced in April 2027, although concerns such as rising long-term interest rates and higher crude oil prices remain.