Looking at the outlook in detail by major component, business fixed investment is projected to continue to see a moderate increase on the back of a marked improvement in corporate profits and accommodative financial conditions. Private consumption is projected to generally remain resilient, reflecting the developments in real disposable income.
Housing investment is expected to continue picking up, underpinned by the continued steady improvement in the employment and income situation and the low levels of housing loan rates. Industrial production is likely to start picking up as the inventory adjustments progress, and thereafter is likely to follow a moderate increasing trend, supported by an increase in final demand at home and abroad.