The aggregate supply of capital goods on a basis excluding transport equipment – a coincident indicator of machinery investment – has been on a moderate uptrend, with the fluctuations smoothed out; it was temporarily flat in the July-September quarter of 2014, but rose again in the October-December quarter.
Machinery orders on a basis excluding orders for ships and those from electric power companies – a leading indicator of machinery investment – have been increasing since the July-September quarter, and business fixed investment plans are generally favorable as well. Taking these factors into account, business fixed investment is projected to continue a moderate increasing trend as corporate profits follow their improving trend.