Based on an overall judgment, taking into account the information from our business contacts, production is expected to recover to the pre-earthquake level sometime during July to September. Household sentiment is also improving somewhat. With regard to business sentiment, we are carefully monitoring business fixed investment plans.
In this regard, business sentiment is becoming firm, as evidenced by the June Tankan (Short-Term Economic Survey of Enterprises in Japan), in which business fixed investment plans were revised upward from the March Tankan. After overcoming the supply-side constraints, which has been the most serious cause of concern, the short-term prospects for Japan’s economy will rely on demand-side developments.