If overall uncertainties wane to some degree in reflection of such progress, firms are likely to take more positive actions, although the Bank judges that uncertainties regarding the global economy are still significant, as I will talk about later. The second is that adjustments in the global manufacturing sector have progressed and business sentiment has improved (Chart 3).
In the IT-related sector in particular, inventory adjustments have progressed globally and world semiconductor shipments have picked up. As for the outlook for this sector, demand related to data centers and the 5G network is expected to increase, thereby pushing up production activity. The Bank's projection is consistent with those presented by international organizations.