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Domestic economy worsened for two months in a row due to rising crude oil prices

June 5, 2018

- Retail industry significantly worsened because of weak consumer confidence.

(Companies researched: 23,157 ; Valid responses: 10,001 ; Response rate: 43.2 %; Survey start date: May 2002)

 

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: Possibility of change in expansion trend 

 

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.

 

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