From spring to summer this year, a temporary slowdown in economic recovery seems inevitable due to a reaction to the boost in demand that is occurring ahead of the rise in the consumption tax rate. However, given the strengthening of the virtuous circle, it is more likely than before that the recovery trend of the economy will be sustained.
In addition, stock prices appear to have stabilized. Therefore, in considering whether the economy can overcome the effects of fiscal tightening to sustain the trend of recovery, it is important to examine macroand micro-economic data, including the economic indicators that will be released in the future, signals from financial markets, and firms’ business plans for the next fiscal year.