Kansai Economic Insight Monthly Vol.76 (August 2019)

Summary: Further economic deterioration in sight

・ Production in June shrank MoM for the first time in three months.
・ Although Kansai logged a trade surplus in July, the total amount of trade declined YoY for the eighth consecutive month. The impact of the trade tensions with Korea are limited to individual firms rather than industries.
・ The Economy Watchers’ Diffusion Index (DI) in July deteriorated MoM for the third consecutive month.
・ Nominal wages in May remained unchanged, but real wages decreased YoY for the third consecutive month.
・ Sales by large retailers in June exceeded last year’s level for the second month in a row.
・ The number of new housing starts in June contracted by -3.6% YoY, decreasing for the third consecutive month.
・ Both the effective job offers-to-applicants ratio and the unemployment declined slightly in June.
・ June was the 16th month of uninterrupted YoY growth in construction works.
・ The number of international arrivals at Kansai International Airport in June grew YoY for the tenth consecutive month.
・ China’s Purchasing Managers’ Index (PMI) in July improved slightly, but it remained below 50 for the third month in a row.