Recent economic trends in Japan reveal that personal consumption is at a standstill, as income remains sluggish. Housing construction is currently increasing due to buoyant condominium construction as well as an increase in the starts of owner-occupied houses, with the overall level somewhat lower than that for the first half of the fiscal year. Investment in plant and equipment keeps decreasing as a trend, although recovery is observed in some industries. As for public works, new starts are sluggish and the pace of implementation is lower than it was a year ago. Exports, especially those to Asia, are increasing.
Industrial production keeps recovering.
The employment situation remains severe, with the unemployment ratio staying at a high level, despite increases in overtime hours worked and in job offers. Company profits keep recovering. Firms' confidence has further improved, although it remains at a low level. All in all, the economy has not yet got out of the severe situation, as the momentum for recovery in private demand remains weak. However, activities continue to improve moderately, through the influence of various policy measures and of the Asian economic recovery.