Although the Japanese economy has not yet got out of the severe situation, activities continue to improve moderately. While the influence of various policy measures and of the Asian economic recovery has diminished a little, there are movements, mainly in the firm sector, gradually growing towards autonomous recovery.
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, though condominium construction, which had been buoyant in recent months, declined. Investment in plant and equipment continues its upward trend, with investment plans in manufacturing revised upwards. The level of public works is lower than the level seen a year ago. Exports, especially those to Asia, have been rising modestly, despite a slowdown in exports to the United States and Europe. Industrial production continues to rise steadily.