However, given that labor market conditions as well as income formation are improving steadily, albeit moderately, the recovery trend in personal consumption does not seem to have been hindered. Among leading indicators of business fixed investment, machinery orders have been increasing steadily, although at a somewhat slower pace compared to the sharp rise in the second half of 1996.
On the one hand, these types of processes could use a very different technology from the current system, which is based on account-to-account transfers, so they could add to the resilience of the overall payments system. But there would be a whole host of new technology issues to manage as well.