Economic Trends / Domestic economy improved for the sixth consecutive month in November, and transportation and warehousing also improved for the second consecutive month.

According to data released by Teikoku Databank (TDB) on December 3rd, the business confidence index (DI) for November 2025 rose by 0.2 points from the previous month to 44.1, marking the first time in five years, since November 2020, that the index has improved for six consecutive months.

<National Business Conditions Index>

By industry, improvements were seen in four sectors, including "transportation and warehousing" and "wholesale."

<Industry-specific Business Conditions Index (DI)>

The business confidence index (DI) for "Transportation and Warehousing" rose 1.3 points from the previous month to 45.5, marking the second consecutive month of improvement. Tourist buses remained strong, with one general chartered passenger bus company stating, "Demand for buses is high due to the autumn travel season." Warehousing-related businesses also improved due to increased demand for refrigerated and frozen products. In addition, general freight transport performed well, boosting business sentiment due to the recovery in the automotive sector and increased e-commerce demand. On the other hand, driver shortages and other issues remain a burden.

The domestic economy continued its improving trend, despite being weighed down by rising procurement costs, thanks to strong demand in the tourism industry and semiconductors. The domestic economy is expected to continue its gradual improvement, albeit with minor fluctuations.

<Future Economic Trends>

Going forward, developments in Japan-China and US-China relations will be closely watched. The key will be the recovery of households' real purchasing power through the implementation of comprehensive economic measures, including wage increases, winter bonuses, and measures to combat inflation. Robust travel demand and investment in AI-related equipment such as semiconductors are factors that will support the economy. On the other hand, rising long-term interest rates due to fiscal expansion, the Bank of Japan's policy interest rate hike, exchange rate fluctuations, instability in Japan-China relations, and labor shortages are considered concerns.

<Comments on the Takaichi administration, negative vs. positive ratio (2nd month in office)>

Regarding the future expectations that companies have for the Takaichi administration, while there are some voices expressing concern about the future, negative opinions accounted for less than 1%.

Minimum wage increases compared to last year, but capacity to handle the situation is diminishing, revealing the uncertain outlook for the transportation and warehousing sectors.