Looking at the diffusion index (DI) for business conditions in the Tankan survey, the DI for the nonmanufacturing sector has been better than that for the manufacturing sector in this recovery phase (Chart 2).
Of this firm domestic demand, private consumption had been supported by an improvement in consumer confidence and wealth effects from the rise in stock prices since the turn of the year, while buoyant consumption by the elderly, notably baby boomers, had been serving as an underlying factor (Chart 3).