Economic Trends Research, May 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 May 2018: Economy continues at a standstill
The economic diffusion index (DI) in May 2018 was 49.4, down 0.4 points from the previous month, and worsened for two months in a row. The domestic economy remained at a standstill, due to an increased burden of costs for companies and individuals caused by rising crude oil prices, amid growing uncertainty over the environment surrounding the Japanese economy.
Future outlook: Uncertainty has intensified
While the domestic economy is expected to be led by exports and capital investment, it is necessary to observe carefully the possibility of the emerging overseas risks putting downward pressure on business activity.
Primary points of survey results(summary)
- 1 By industry : The “retail” industry significantly worsened due to an increased cost burden and weak consumption caused by rising crude oil prices.
- 2 By size :“Large enterprises” and “SMEs” took a downturn for two months in a row.
- 3 By region : While eight of the ten regions worsened, improvement was not seen in any region.
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