Economic Trends Research, November 2018
Economic DI improved for the first time in four months
— Disaster recovery and reconstruction and construction demand rippled across related industries —
Overview of November 2018: Weak domestic economy
The economic diffusion index (DI) in November 2018 was 49.5, up 0.5 point from the previous month, and the first improvement in four months. The domestic economy has improved because construction demand, such as disaster recovery, reconstruction work and housing construction, has rippled across related industries. Along with the contribution of demand towards the end of the year and stability in fuel price, the weakening trend temporarily receded.
Future outlook: Uncertainty has intensified
While capital investment is going to support the domestic economy, last-minute demand due to the hike in the consumption tax rate is expected. On the other hand, there are concerns about the reactionary decline and overseas risks, and uncertainty has intensified.
Primary points of survey results(summary)
- 1 By industry : Seven industries improved. Expansion in construction demand rippled across related industries.
- 2 By size : “SMEs” and “small enterprises” improved for the first time in three months.
- 3 By region : Six of the ten regions improved. Recovery and reconstruction from natural disasters are progressing.
Economic and Industry Trends TOP