This is because production has been BIS Review 112/1997  -2-  cut back mainly in the industries with excessive inventories, such as consumer durables and construction-related goods, although production of electrical machinery continued to increase, reflecting steady exports. Production in October and November is expected to decrease as a result of inventory adjustment pressures.
With respect to labor market conditions, the unemployment rate has remained at a high level, and the ratio of job offers to job applications has recently eased somewhat. Growth in overtime working hours and nominal wages has slowed slightly reflecting weak production. However, year-to-year employment growth has been moderate but steady.