With regard to final demand, although business fixed investment is starting to recover, private consumption continues to be weak. Moreover, housing investment remains sluggish and public investment is declining. While domestic demand has not shown clear signs of recovery, both exports and imports are increasing at a very modest pace with net exports remaining virtually level.
Industrial production continues to be basically level in response to these developments in final demand. Corporate profits continue to recover, but the improvement in business sentiment as a whole has come to a halt due mainly to substantial uncertainty regarding the economic outlook. As for the employment situation, new job offers are on a gradual rising trend.