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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 with the long holidays, and domestic economy may have entered a recession phase.

Future outlook: Uncertainty has further intensified

Uncertainty about the future domestic economy has further intensified, such as how the US-China trade conflict will turn out, in addition to concerns about declining consumption due to the consumption tax hike.

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