Meanwhile, public-sector investment has been decreasing, and housing investment has also continued to be weak. Personal consumption has continued to stagnate, reflecting weakening consumer confidence. Industrial production has been on a slightly declining trend because inventory adjustment pressure has spread gradually reflecting weak final demand. The pace of improvement in employment and income conditions has been slowing.
Meanwhile, according to business surveys, the financial position of firms, particularly that of small firms, remains severe. The monetary base exhibits a high year-on-year growth rate of around 20 percent. The year-on-year growth rate of the money stock dropped to around 2.0-2.5 percent in December. Funding costs for firms continue to be at extremely low levels on the whole.