Financial markets around the world also are making adjustments, reflecting changes in the economy as they seek a new equilibrium. The Japanese economy has so far been moving in line with the forecast described in the April Outlook Report. Although various risks lie ahead, Japan's economy is likely to achieve sustainable growth under price stability.
But our polling in August took place in the midst of market volatility after Standard & Poor’s downgrade of U.S. debt, and the September survey occurred just days after the hurricanes and the severe flooding in New Jersey and Pennsylvania.