With regard to final demand, business fixed investment has been on a downward trend. Recovery in private consumption continues to be weak on the whole. Net exports (exports minus imports) are sluggish at present due to an increase in imports. Meanwhile, housing investment has continued to recover, and public works have been rising.
Reflecting such developments in final demand and continued progress in inventory adjustment, industrial production has stopped decreasing. In addition, corporate and consumer sentiment has seen an improvement due to the effects of measures taken to restore the stability of Japan’s financial system and the continued monetary easing by the Bank.