In this environment, positive effects stemming from the increased corporate profits have gradually spread to household income, feeding back to the corporate sector via the increase in private consumption: in other words, there is a positive interaction between the corporate and household sectors. Industrial production is on the increase with the completion of adjustment in IT-related sectors.
Overall, the current economic recovery appears moderate in pace, but sustainable. The economy is thus unlikely to fall into recession due to domestic factors. In the corporate sector, profitability has substantially improved, as the adjustment in excess capacity and employment has finally come to an end.