A factor contributing to the strength in overall exports is the growth in inbound demand led by the increasing number of visitors to the World Heritage site Tomioka Silk Mill and to popular hot springs. As Japan's economy has continued to grow moderately, corporate profits and business sentiment also have maintained their improving trend.
While labor shortages have continued and supply-side constraints gradually have become apparent, as evidenced by delays in procurement of some components in the manufacturing sector and an increase in front-loaded orders placed in anticipation of future delays, firms are becoming more active in making business fixed investment intended to promote labor saving and expand production capacity.