The Japanese economy, in terms of demand, shows that personal consumption is at a standstill, as income remains sluggish, and it showed a decline at the end of last year due to a decrease in the bonus payments. The level of housing construction has become somewhat lower due to a decrease in the starts of condominiums, which had been buoyant recently. Recovery in investment in plant and equipment is observed in some industries, although investment in plant and equipment as a whole is still in a decreasing trend. As for public works, new starts have recently recovered due to the effects of the second supplementary budget, etc., although the pace of implementation is lower than it was a year ago. Industrial production keeps gradually increasing.
Corporate profits keep recovering.
Corporate confidence has further improved, although it remains at a low level. The number of bankruptcies remains almost at the same level. The employment situation remains severe, with the unemployment ratio staying at a high level, despite increases in overtime hours worked and in job offers. Exports and imports, especially those to and from Asia, are increasing. As for the balance of international payments, surpluses registered in the trade and service account are gradually decreasing.