This trend is characterized by increases in demand in the machinery industry, where Japanese firms have a competitive advantage, and the IT sector, both reflecting the growing momentum toward a global expansion in business fixed investment. Looking at Japan's exports by type of goods, it can be confirmed that those of IT-related goods and capital goods have increased clearly of late (Chart 4).
That said, it is not only the manufacturing industry that has seen an improving trend in business conditions. Among domestic demand-oriented firms in the nonmanufacturing industry, business conditions of retailers, which provide goods, have been generally firm despite temporary store closures and other restrictions, supported by stay-at-home consumption by households that have lost opportunities for going out due to the spread of COVID-19.