The pace of recovery in private consumption will likely remain very moderate from a somewhat longerterm perspective, even considering that wages will gradually see a higher rate of increase in accordance with a rise in productivity brought about by an increase in business fixed investment, and that confidence in the sustainability of the social security system will increase because of the implementation of related reforms.
Regarding private business fixed investment, such investment on a GDP basis has been slow to increase so far despite a pick-up in monthly indicators, such as shipments and the aggregate supply of capital goods, and the firmness in investment plans suggested by the results of the Tankan (Short-Term Economic Survey of Enterprises in Japan).