Then, I will present the current condition of and the Bank’s outlook for prices in the same manner. A. Current condition of and outlook for economic activity  Japan’s economy has been recovering moderately. On the demand side, exports have been picking up at a somewhat slower pace, but domestic demand – notably private consumption, public investment, and housing investment – has been firm.
Reflecting the differences in the extent of recovery strength between domestic and external demand, the pace of increase in industrial production has remained moderate while activity in the nonmanufacturing sector, including services and construction, has been somewhat strong. Looking ahead, while domestic demand is likely to maintain firmness, external demand is expected to increase moderately.