Economic Trends Research, December 2018
Domestic economy continues on a weakening trend
— A decline in the manufacturing industry’s performance due to the slowdown in exports —
Overview of December 2018: Weak domestic economy
The economic diffusion index (DI) in December 2018 was 49.4, down 0.1 point from the previous month, and worsened for the first time in two months. Although there was year-end demand, the manpower shortage accelerated and the domestic economy continued on a weakening trend, such as a decline in the manufacturing industry’s performance due to the slowdown in exports, etc.
Future outlook: Uncertainty has intensified
While a demand increase due to the hike in the consumption tax and a reactionary decline are expected, there are concerns about the slowdown of external demand in China, etc., and how the US-Japan trade negotiations will progress, so uncertainty has further intensified.
Primary points of survey results(summary)
- 1 By industry : A manpower shortage accelerated due to year-end demand being impacted by the slowdown of external demand.
- 2 By size : While “SMEs” worsened, “large enterprises” improved for the first time in five months.
- 3 By region : All ten regions worsened on a year-on-year comparison. Some regions were also impacted by the warm winter.
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