In the corporate sector, profits clearly have continued to improve, registering a record high, with support from an improvement in the real economy as well as the low crude oil prices and the low yen rate (Chart 1). Against this background, business fixed investment has been on a moderate increasing trend.
According to the business fixed investment plans in the December 2015 Short-Term Economic Survey of Enterprises in Japan (Tankan), firms have maintained their positive fixed investment stance. In the household sector, labor market conditions have continued to tighten.