Turning to the outlook, as for exporting conditions, the synchronized inventory adjustment in IT-related goods worldwide is coming to an end except for some goods such as networking equipment. Overseas economies, mainly in the U.S. and East Asia, are likely to follow a recovery path. Moreover, the yen is at low levels compared to last autumn.
Under these circumstances, exports are expected to pick up moderately for the time being. Meanwhile, with respect to domestic demand, business fixed investment is expected to follow a downtrend for a while, judged mainly from leading indicators and firms’ investment plans. Private consumption is also likely to remain lackluster mainly due to worsening employment and income conditions.