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 increased due to the effects of the second supplementary budget, etc., although the pace of implementation is lower than it was a year ago. Exports, especially those to Asia, are increasing. Industrial production keeps gradually increasing. The employment situation remains severe, with the unemployment ratio staying at a high level, despite increases in overtime hours worked and in job offers.
Corporate profits keep recovering.
Corporate confidence has further improved, although it remains at a low level. The Japanese economy has not yet got out of the severe situation, as the momentum for recovery in private demand remains weak. The demand was relatively sluggish at the end of last year. However, activities continue to improve moderately, as is seen in positive movements in corporate activities, through the influence of various policy measures and of the Asian economic recovery. The Government aims to realize a smooth baton pass, toward a full-scale recovery, from public to private demand and to establish a new solid foundation for economic development in the 21st century.