Bank of Japan presents its quarterly economic outlook for summer 1997 BANK OF JAPAN, QUARTERLY BULLETIN, August 1997 (advance summary). 1. Japan’s economy continues on a moderate recovery trend. Production and income are showing underlying firmness despite the continued reaction to the temporary surge in demand ahead of the consumption tax hike.
Among final demand items, public-sector investment has been on a decreasing trend, and housing investment has been somewhat lackluster, particularly as a result of the reaction to the rise in demand ahead of the consumption tax hike. On the other hand, net exports have recently increased significantly and business fixed investment has been rising steadily.