There has been other good news with regard to private consumption, such as the recovery in new car sales to a level exceeding 12 million cars on an annualized basis for the first time in 14 months. Nevertheless, activity in the housing market has been sluggish, and there has been little improvement in prices and sales or progress in inventory adjustments.
This will require a brave effort from all parties involved, enterprises and households alike, to adapt to the new conditions. We must not repeat the painful mistakes of the past. 1. Adding to the credit-related macroeconomic uncertainties are those that arise from the possibility of further increases in the world prices of oil and other raw materials as well as food. 2.