However, in view of the firm developments in production and improvements in corporate profits and household income, the Bank judges that the economy continues to follow a moderate recovery  BIS Review 82/1997  -2-  trend. The results of the June Tankan—Short-term Economic Survey of Enterprises in Japan, which were released two days ago, for the most part confirmed this view.
The question is whether the virtuous circle of demand, production, and income, which has been developing steadily, will keep its momentum and whether, as a result, the economy will gain further momentum for a self-sustained recovery despite the downward pressures of fiscal tightening.