Given such improvement in the employment and income situations, private consumption has been firm, and is on an upward trend, albeit with some fluctuations. Although sales of automobiles and sales at department stores were slightly weak in July and August, this was mainly in reaction to the substantial increase in sales during the April-June quarter, and the upward trend in private consumption remains intact.
Of course, risk factors do exist and ought to be taken into account in assessing an economic outlook. We should pay attention to the protracted surge in crude oil prices and its possible effect on overseas economies, including that of the United States. Crude oil prices, which have been rising for the past few years, marked a record high around the end of August.