ABSTRUCT
Summary: The economy is deteriorating but likely to level off
▶ Production: Kansai’s Q3 production expanded YoY for the first time in three quarters.
▶ Nominal wages in Osaka, Kyoto and Hyogo prefectures increased, but real wages kept declining.
▶ Internatinoal trade: Kansai logged a trade surplus in October. However, both exports and imports shrank YoY.
▶ Business confidence: The October Diffusion Index dropped to 39.9, reflecting the reactionary fall after the rush demand in September.
▶ Construction: The number of new housing starts declined, but construction volume expanded YoY in Q3.
▶ Labor market: Nominal and real wages kept declining in August. The number of new job openings decreased and unemployment increased in September.
▶ Inbound sector: International arrivals at Kansai International Airport grew slightly YoY in October.
▶ Chinese economy: China’s PMI in October deteriorated to 49.3. Production, domestic consumption and fixed capital investment all saw decelerating growth rates. China’s international trade volume kept shrinking.
