Purse strings started to loosen, despite the fact that the purse contents have not increased. Housing construction keeps the level recorded a year ago as a whole, although the starts of self-owned houses have fallen after a recent surge. Investment in plant and equipment keeps decreasing substantially as a trend. Implementation of public works is proceeding, despite the recent weakness in new starts. Exports are gradually increasing with those to Asia in a rising trend.
Industrial production is broadly stable, at a low level, reflecting above final demand conditions.
But there are signs of improvement. The employment situation remains severe. The number of employees has decreased and the unemployment ratio stays at an unprecedented high level with an increase in involuntary unemployment. Although firms become less concerned about financial liquidity, lending by private financial institutions remains stagnant. Firm profits have started to recover.