Production has been declining mainly because of decreases in electrical machinery and general machinery. Meanwhile, in the household sector, the active job openings-toapplicants ratio is rising moderately and employee income has been above the previous year’s levels. Private consumption has been recovering on the whole, as retail sales have remained robust, despite the continued weakness of passenger-car sales (Chart 15).
From a longer-term perspective, the transfer of production sites from Nara Prefecture to other locations, including foreign countries, has been proceeding amid intense international competition.