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Domestic economy, signs of entering a recession phase

March 8, 2019

 -  Affected by a slowdown in exports to China, etc.,against the backdrop of US-China trade disputes -

 

(Companies researched: 23,035; Valid responses: 9,856; Response rate: 42.8%; Survey start date: May 2002)

 

 

Overview of January 2019: Signs of entering a recession phase

 

The economic diffusion index (DI) in January 2019 was 48.1, down 1.3 points from the previous month, and worsened for the second consecutive month.  In addition to a slowdown in exports to China, the climate’s tendency of unusually warm winters and a manpower shortage were also negative factors.  As a result, the domestic economy has worsened and begun to show signs of entering a recession phase.

 

 

Future outlook: Uncertainly has intensified

 

The future domestic economy is likely to be pushed downward due to growing risks centered around overseas, in addition to the consumption tax rate hike and increasing cost burden. Uncertainty has intensified further.

 

 

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