Recent economic trends in Japan reveal that personal consumption is gradually recovering, though not strongly as income remains sluggish. Housing construction has recovered. Investment in plant and equipment keeps decreasing substantially as a trend. Public works are bullish as a whole. Exports are broadly stable with those to Asia in an increasing trend.
Industrial production is broadly stable, at a low level, reflecting above final demand conditions.
But there are signs of future improvement. The employment situation has become severer. The number of employee has decreased and the unemployment ratio has risen to an unprecedented level with an increase in involuntary unemployment. Although lending by private financial institutions remains stagnant, firms are less concerned about financial liquidity. Firms' confidence is on an improving trend, although at a low level.