Kansai Economic Insight Monthly Vol.78 (October 2019)
Summary: The economy is currently deteriorating but likely to level off
▶ In August, production shrank and the rush demand before the tax hike was still limited. Large retailers’ revenues increased, but the number of new housing starts declined.
▶ Nominal wages in Osaka, Kyoto and Hyogo prefectures increased, but real wages kept declining.
▶ In September, Kansai logged a trade surplus. Both exports and imports expanded, but that was mainly due to the rebound from last year’s typhoon-induced slump in trade.
▶ The huge YoY increase in the number of international arrivals at Kansai International Airport in September can also be attributed to last year’s typhoon.
▶ The value of public works contracts declined, but an upward trend is expected in the areas affected by the natural disasters in October.
▶ China’s Q3 GDP expanded an annualized +6.0%, an all-time low. Consumer spending remained unchanged. Industrial production accelerated, but fixed capital investment decelerated. Prospects remain unclear.