Personal consumption remains broadly flat, despite the decrease in income is coming to an end. The level of housing investment is stable as a whole with bullish condominium construction. Investment in plant and equipment continues its upward trend. The level of public works is lower than the level seen a year ago. Exports, especially those to Asia, have been rising modestly, despite a slowdown in exports to the United States and Europe.
Industrial production continues to rise steadily.
Although the employment situation remains severe with the unemployment ratio staying at a high level, there are improvements such as continued increase in overtime hours worked and in job offers. Corporate profits continue to improve markedly. Corporate confidence has further improved as a whole, although it remains at a low level in some sectors. On the other hand, the number of business failures has been somewhat high, with gross debt of failed firms rising. The main thrust of economic and fiscal policy of the Japanese Government should continue to be to sustain economic recovery.