Deterioration of the economic trend index Exceeding the previous tax increase The first time in 8 years and 7 months December 6 16:47
The consumption tax rate has been raised, and the October economy index has deteriorated 5.6 percentage points from the previous month due to a drop in sales of household goods at retail stores such as home centers. The extent of the deterioration was the first time in 8 years and 7 months, surpassing the previous tax increase five years ago.
In October, the economic trend index announced by the Cabinet Office was 94.8, which is a coincidence index that indicates the current state of the economy, with 2015 as 100, 5.6 points below the previous month.
The extent of the deterioration was 4.8 points after the tax increase five years ago, the first time in 8 years and 7 months since March 2011 when the Great East Japan Earthquake occurred.
This was due to a decrease in sales of daily necessities at retail stores such as home centers due to a reaction to last-minute demand accompanying the increase in the consumption tax rate, and a decline in the production of machines used in automobiles and factories against the backdrop of a slowdown in the overseas economy. .
The economic keynote, which is mechanically derived from the movement of the index, was marked as “deterioration” indicating a high possibility of a recession.
This is the third consecutive month of “deterioration”.
The Cabinet Office says that disasters such as Typhoon No.19 are also likely to cause a decline in retail sales.