Although sales of electrical appliances, as well as sales at department stores and supermarkets, rose significantly in March 1997, April figures available for department stores in Tokyo are significantly below the previous year’s level. However, the recovery trend in personal consumption do not seem to have been hindered, as labor market conditions as well as household income formation are improving steadily, albeit moderately.
Among leading indicators of business fixed investment, machinery orders have increased steadily. Construction floor area has also continued to recover moderately. With respect to housing investment, housing starts in terms of the seasonally-adjusted annual rate reached a significantly high level in the fourth quarter 1996, partly reflecting the stepped-up demand ahead of the rise in the consumption tax rate.