Housing investment is in a weak tone. Housing investment had generally remained at an annual rate of about 1.2 million units since 1999. However, after rising in December due to a sharp increase in the number of condominium starts, housing investment fell the next two consecutive months and stood at an annual rate of 1.135 million units in February. The numbers of starts of owner-occupied houses, houses for rent, and houses for sale all fell from the preceding month for the first time in 12 months, pushing the total level lower. Furthermore,the number of applications for Housing Loan Corp. loans has been declining, a factor that may decrease housing starts in the near future.
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. However, with the difference in the timing of construction orders having been almost eliminated, some of the indices again began to show sharp declines from year-earlier levels. Public investment in the January-March quarter is expected to remain weak as a whole compared with the preceding year that witnessed a relatively high level, but the supplementary budget that was compiled in November is expected to prop up the economy.