May 2026
TDB Trends Research, May 2026
The domestic economy improved for the first time in three months, temporarily avoiding a deeper slump
— Continued caution over rising costs and supply constraints amid a “Middle East supply shock” —
Trend in May 2026: Slight Improvement
The Economic Diffusion Index (DI) for May 2026 increased by 0.1 points from the previous month to 41.6, improving for the first time in three months.
Although the domestic economy remained at a low level due to rising procurement costs driven by higher crude oil prices and delays in passing on costs, robust performance in AI-related sectors helped the economy avoid a deeper slump for the time being.
Future outlook: Unchanged
Looking ahead, while there are factors supporting a recovery, the pace of improvement is expected to remain slow, with the economy likely to move within a flat range accompanied by downside risks for the time being.
Primary points of survey results(summary)
- 1 By industry: 6 of the 10 industries improved, indicating a divergence in business conditions across industries.
- 2 By scale: “Large firms” and “small to medium-sized firms” improved, while “micro firms” deteriorated.
- 3 By region: 4 regions improved while 5 deteriorated, highlighting a split in regional economic conditions.
Economic Trends Research, May 2026Economic and Industry Trends TOP