Labor productivity has increased only 1/2 percent per year since 2010--the smallest five-year rate of increase since World War II and about one-fourth of the average postwar rate (figure 11). The slowdown in productivity has been worldwide and is evident even in countries that were little affected by the crisis (figure 12).
Given such improvement in the employment and income situations, private consumption has been firm, and is on an upward trend, albeit with some fluctuations. Although sales of automobiles and sales at department stores were slightly weak in July and August, this was mainly in reaction to the substantial increase in sales during the April-June quarter, and the upward trend in private consumption remains intact.