BIS Review 43/1997  -2-  It should be borne in mind that increase in demand ahead of the rise in the consumption tax rate scheduled for fiscal 1997 is contributing to the recent improvement in economic indicators, as in housing investment, and these improvements need to be seen in this light.
However, despite a gradual decrease in public-sector investment from the latter half of 1996, the virtuous circle - in which increased production leads to a recovery in business fixed investment and personal consumption through improved corporate profits and employment income - is gradually becoming more apparent. This improvement is encouraging.