#JapanEconomicTrendResearch

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60.4% of companies are working on work style reform

- “Introduction of satellite office and work from home,” and “Approval for second jobs”rank high for future initiatives - A “work style reform law” was enacted on April 1, 2019. This law will be applied to SMEs in some fields from April 2020, and the scope of its application will be expanded gradually. Companies are required to realize diverse and flexible work styles, ensure fair treatment, and also address elimination of labor shortage and productivity improvement. Therefor

60.4% of companies are working on work style reform

Economic DI worsened for the third month in a row, with sluggish year-end demand

～ Domestic economy has entered a recession phase, with manufacturing industry’s continuing downturn ～（Companies researched: 23,652; Valid responses: 10,292; Response rate: 43.5%; Survey start date: May 2002) Overview of December 2019: Recession phase The economic diffusion index (DI) in December 2019 was 42.5, down 1.1 points from the previous month, and worsened for the third consecutive month in a row. Domestic economy seems to have entered a recession phase, although the

Economic DI worsened for the third month
in a row, with sluggish year-end demand

44.1% of companies consider it should be implemented as scheduled, but antagonize those with negativ

- About half of companies responded, “There will be no last-minute demand.” - Although the consumption tax rate was supposed to be raised to 10% in October 2015 according to the Revised Consumption Tax Act of 2012, the consumption tax rate increase was postponed twice, in November 2014 and June 2016. Currently, the government says that the consumption tax rate will increase to 10% in October 2019. A reduced tax rate system will also be introduced upon this consumption tax rat

44.1% of companies consider it should be implemented as scheduled, but antagonize those with negativ

Domestic economy has worsened for seven months in a row

- While deterioration in manufacturing continues, last-minute demand appeared in part of the retail （Companies researched: 23,632; Valid responses: 9,977; Response rate: 42.2%; Survey start date: May 2002) Overview of May 2019: Possibility of entering a recession phase The economic diffusion index (DI) in June 2019 was 45.1, down 0.3 points from the previous month, and worsened for the seventh consecutive month. Stagnant exports and the cost burden remaining at a high level c

Domestic economy has worsened for seven months in a row

Domestic Economy may have entered a recession phase

- Negatively affected by the US-China trade conflict and the long holidays. （Companies researched: 23,169; Valid responses: 9,555; Response rate: 41.2%; Survey start date: May 2002) 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 wit