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. The Japanese economy, in terms of demand, shows 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 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 that a year ago.
Industrial production keeps recovering.
Company profits keep recovering. Firms' confidence has further improved, although at a low level. The number of bankruptcies remains almost at the same level. The employment situation remains severe, with the unemployment ratio staying at a high level, despite increases in overtime hours worked and in job offers. Exports, especially those to Asia, are increasing.