Recent economic trends in Japan reveal that personal consumption is gradually recovering, though not strongly as income remains sluggish. Housing construction is recovering. Public works are bullish. Exports are broadly stable.
Industrial production is broadly stable, at a low level, reflecting above final demand conditions.
The employment situation is still severe. The unemployment ratio stays at a high 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. All in all, the economy is in a severe situation, as private demand shows little momentum of recovery.