Yet, I frequently hear that there is considerable pent-up need for replacement investment and investment in environmentally friendly equipment, given that firms have held back on such investment since the collapse of Lehman Brothers. Barring any extreme external shocks, the pick-up in business fixed investment is therefore expected to gradually become more pronounced as a result of the improvement in corporate profits.
Turning to the household sector, private consumption in the July-September quarter of 2010 was supported by the last-minute rise in demand ahead of the expiration of subsidies for purchases of environmentally friendly cars and the increase in the tobacco tax, in addition to the boost from the extremely hot weather.