Economic Trends Research, September 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 September 2018: Weak domestic economy
The economic diffusion index (DI) in September 2018 was 49.4, down 0.1 point from the previous month, and worsened for the first time in three months. The domestic economy continued at a standstill, being supported by strong construction demand, etc., while business confidence worsened mainly in the areas stricken by successive disasters.
Future outlook: Uncertainty has intensified
Although capital investment and exports continue to be strong and reconstruction demand is expected, uncertainty over the domestic economy is growing amid increasing overseas risks.
Primary points of survey results(summary)
- 1 By industry : While successive typhoons and earthquakes spread negative effects, the construction industry improved for the fifth consecutive month.
- 2 By size :“Large enterprises” and “SMEs” worsened. “Large enterprises” continue at a standstill.
- 3 By region : Six of the ten regions worsened. Successive natural disasters hold down the economy.
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