Information Releases

July 2026

TDB Trends Research, July 2026

The domestic economy improved for the third consecutive month
— Recovering sales and production, together with spillover effects from AI-related demand,boosted business sentiment —

Trend in July 2026: Improvement

The Economic Diffusion Index (DI) for July 2026 increased by 1.0 point from the previous month to 43.6, marking a third consecutive month of improvement.
The domestic economy was supported by a recovery in sales, production, and shipment volumes, as well as expanding demand related to AI and semiconductors. Strong demand for air conditioners and other seasonal products driven by extreme heat also contributed to the improvement.

Future outlook: Gradual recovery

The economy is expected to continue improving in the near term. However, the pace of recovery is likely to slow due to the impact of rising costs and higher interest rates, resulting in only gradual improvement.

Primary points of survey results(summary)

1. 1 By industry: 6 of the 10 industries improved, with recoveries in “manufacturing” and “construction” providing significant support.
2. 2 By scale: All company sizes improved for the second consecutive month, supported by demand for summer-related products as well as AI- and semiconductor-related sectors.
3. 3 By region: All ten regions improved for the second consecutive month, underpinned by vigorous production activity.

Economic Trends Research, July 2026