Personal consumption remains broadly flat, while the decrease in income is coming to an end. The level of housing investment is stable as a whole with bullish condominium construction. The recovery in investment in plant and equipment has become clear. The level of public works is lower than the bullish level seen a year ago. Exports, especially those to Asia, are gradually increasing as a trend.
Industrial production continues to gradually increase.
Although the employment situation remains severe with the unemployment ratio staying at a high level, there are improvements such as continued increases in overtime hours worked and in job offers. Corporate profits are markedly improving. Corporate confidence has further improved as a whole, although it remains at a low level in some sectors. The Japanese economy has been supported by public demand. The Government has decided to promptly spend the contingency budget for public works in order to make sure to support activities.