Information Releases

May 2019

Economic Trends Research, May 2019

Domestic Economy may have entered a recession phase
— Negatively affected by the US-China trade conflict and the long holidays —

Overview of May 2019: Possibility of entering a recession phase

The economic diffusion index (DI) in May 2019 was 45.4, down 1.4 points from the previous month, and worsened for the sixth consecutive month. Intensified US-China trade conflict coincides with emerging negative effects associated with the long holidays, and domestic economy may have entered a recession phase.

Future outlook: Uncertainty has further intensified

Uncertainty about the future domestic economy has further intensified, such as how the US-China trade conflict will turn out, in addition to concerns about declining consumption due to the consumption tax hike.

Primary points of survey results(summary)

1. 1 By industry : All ten industries worsened. The long holidays have had a negative effect.
2. 2 By size : Business confidence of “SMEs” have significantly deteriorated, being largely impacted by the US-China trade conflict.
3. 3 By region : All ten regions worsened. A downturn in urban areas exerted downward pressure on all regions.

Economic Trends Research, May 2019