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Domestic economy is weak and has worsened for three months in a row

July 3, 2018

 

- Greater uncertainty due to expanding trade friction -

 

(Companies researched: 23,149 ; Valid responses: 9,694 ; Response rate: 41.9 %; Survey start date: May 2002) 

 

Overview of June 2018: Weak domestic economy

 

The economic diffusion index (DI) in June 2018 was 49.0, down 0.4 points from the previous month, and worsened for the third consecutive month.  The domestic economy has weakened as a result of an increase in the cost burden resulting from the high price of crude oil, amid greater uncertainty due to expanding trade friction in the domestic economy. 

 

Future outlook: Possibility of situation change 

 

While exports and capital investments are expected to continue to be strong, it is necessary to observe carefully the possibility of overseas risks, such as intensified trade friction holding down the domestic economy 

 

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