Public investment is sluggish as a whole. Public investment remains generally stagnant, such as contracted public works orders that have continued to fall below the previous-year levels since June 2000. Looking at the movements of public works-related budget in fiscal 2000, as the national budget of the preceding year was at a high level, the revised budget was smaller than the level of the preceding year. As for local governments, the trend to curb investment expenses has continued due to severe financial conditions. Exports are decreasing.
Imports remain broadly flat.
The surplus in the trade and service account is decreasing. Exports are decreasing as exports of electric machinery, such as semiconductors and other electronic devices are decreasing, reflecting the economic slowdown in the U.S. and in Asian countries. Exports to Asian countries, mainly to Asian NIEs, decreased, although exports to China increased. Exports to the U.S. and EU countries also decreased. In the future, the continuing slowdown of the U.S. economy is expected to work as a factor to curb exports from Japan.