Recent economic trends in Japan reveal 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 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.