The nominal current account surplus is also beginning to rise, although the pace of increase is slower than that of the real trade surplus, partly because the rise in oil prices is pushing up import volume. Industrial production has increased significantly by an annual rate of over 10 per cent quarter-to-quarter in the fourth quarter of 1996.
This increase was caused by the rise in final demand, particularly in demand conducive to production, such as passenger car sales, machinery orders, and net exports, in addition to the completion of inventory adjustments. Industrial production is expected to continue increasing significantly in January and February 1997, reflecting the rise in demand ahead of the consumption tax rate hike.