Information Releases

Economic Trends Research, August 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 August 2018 was unchanged from the previous month, at 49.5. While automobile-related production recovers and strong inbound demand continues, the heatwave and natural disasters had various impacts on the domestic economy, which continued at a standstill.

Future outlook: Uncertainty has intensified

While capital investment and exports continue to be strong hereafter, uncertainty about the future has intensified due to growing overseas risks, although reconstruction demand is expected.

Primary points of survey results(summary)

  1. 1 By industry : “Retail” worsened due to a move to refrain from going out due to the heatwave and typhoons.
  2. 2 By size :“SMEs” and “small enterprises” improved for two consecutive months.
  3. 3 By region : While six of the ten regions improved, four worsened. There is a difference of view on business confidence.
Economic Trends Research, August 2018
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