Economic Trends Research, June 2018
Economic diffusion index (DI) worsened for two months in a row, domestic economy is weak
— An increase in the cost burden resulting from the high price of crude oil and manpower shortage —
Overview of August 2018: Weak domestic economy
The economic diffusion index (DI) in June 2018 was 49.0, down 0.4 points from the previous month, and worsened for the third consecutive month. The domestic economy has weakened as a result of an increase in the cost burden resulting from the high price of crude oil, amid greater uncertainty due to expanding trade friction in the domestic economy.
Future outlook: Uncertainty has intensified
While exports and capital investments are expected to continue to be strong, it is necessary to observe carefully the possibility of overseas risks, such as intensified trade friction holding down the domestic economy.
Primary points of survey results(summary)
- 1 By industry : The “Manufacturing” industry worsened for the fifth month in a row, due to the burden caused by a rise in raw material prices.
- 2 By size :All of “large enterprises,” “SMEs” and “small enterprises” took a downturn for the first time in two months.
- 3 By region : Eight of the ten regions worsened, and business confidence for some regions was held down due to consequences of the earthquake.
Economic and Industry Trends TOP