However, sentiment for manufacturing has been more or less flat due to the effects of high raw material costs and production adjustments for IT-related goods. With corporate profits being at high levels, business fixed investment has continued to increase moderately.
There is a view that this increase has been driven mainly by digital- and labor saving-related investments, investment intended for construction of logistics facilities on the back of an expansion in e-commerce, and investment related to urban redevelopment projects. Production and exports have also continued on their uptrend, albeit with fluctuations, with the waning of supply-side constraints (Chart 3).