Business fixed investment plans in the Bank's Tankan (Short-Term Economic Survey of Enterprises in Japan) show that investment is expected to see a solid increase for fiscal 2021. These factors suggest that, in the corporate sector, a virtuous cycle from profits to business fixed investment has resumed, triggered by an increase in external demand on the back of a recovery in overseas economies.
Turning to the household sector, the employment and income situation has remained weak, although significant deterioration has been avoided, partly owing to policy support (Chart 4). The number of employed persons declined due to the impact of COVID-19, mainly for non-regular employees in the face-to-face services sector, and has remained at a relatively low level to date.