Further, although the feeling of stringent corporate financing has been mitigated, stagnancy in lending by private financial institutions continues. The U.S. economy has continued to expand, although its future course is uncertain. Personal spending and capital investments are increasing. The pace of expansion in housing investment slackened in the second quarter of this year, partly in reaction to a sharp rise in the first quarter. Employment decreased due to temporary factors.
Prices are stable overall.
In Western Europe, the German economy is improving gradually while the French economy is expanding moderately and the British economy is also improving. Industrial production has turned higher in Germany, remains almost unchanged in France and is rising in Britain. The unemployment rate remains almost unchanged in Germany, is declining slightly in France, although still at a high level, and remains at a low level in Britain. Prices are stable. Turning to East Asia, the pace of economic growth is slowing in China, and prices are declining.