Economic Trends Research, October 2019
Construction demand boosted the economy, with rush demand in some businesses
— Marginal improvement in the domestic economy for the second consecutive month owing to continued deterioration in the manufacturing industry —
Overview of October 2019: Possibility of entering a recession phase
The economic diffusion index (DI) in October 2019 was 43.9, down 1.1 points from the previous month, and the first worsening in three months. While the possibility of entering a recession phase continued in the domestic economy due to sluggish capital spending and a consumption tax rate increase, damage caused by typhoons also had an adverse effect.
Future outlook: Uncertainty will further intensify,due to many downside factors
Consumption trends are key for the future domestic economy. Moreover, there are many causes of concern, such as trade friction and global economic slowdown. Uncertainty about the domestic economy has been further intensifying.
Primary points of survey results(summary)
- 1 By industry : Eight of the ten industries deteriorated. The consumption tax rate increase and typhoons had an impact.
- 2 By size : All sizes deteriorated. The consumption tax rate increase and typhoon damage exerted downward pressure.
- 3 By region : Nine of the ten regions deteriorated. Deterioration stood out in urban regions which have a large consumption area.
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