Among final demand items, public-sector investment has been on a decreasing trend, and housing investment has been somewhat lackluster, particularly as a result of the reaction to the rise in demand ahead of the consumption tax hike. On the other hand, net exports have recently increased significantly and business fixed investment has been rising steadily.
Despite the continued decline in demand which followed the rise ahead of the consumption tax hike, particularly in consumer durables, the recovery trend in personal consumption does not seem to have been hindered. In these circumstances, industrial production has been firm and the growth in employees’ income has been rising steadily, albeit moderately.