However, as the impact of fiscal austerity persists, some more time is needed before a positive cycle takes hold in European economies as a whole. In the United States, from summer to autumn 2011, economic sentiment deteriorated due to strains in global financial markets and fiscal problems. Reflecting the accommodative financial environment, stock prices recently reached their highest levels since the Lehman shock.
Private consumption has also been firm due to an improvement in the employment situation. However, with pressure from household balance-sheet adjustments persisting, the recovery of the economy as a whole has generally been moderate. As for the outlook, the pace of recovery is likely to remain moderate because, in addition to these balance-sheet adjustments, fiscal problems will also likely persist.