In these areas, large firms in particular have been increasing capital spending to improve efficiency. With regard to development of new products, automakers, for example, have been working to develop energy-saving products such as hybrid cars and electric cars, and sales of hybrid cars are growing steadily. Some electric manufacturers are increasing production of products related to alternative energy, such as solar batteries.
V.  The outlook for Japan's economy and the conduct of monetary policy  In view of the issues I have discussed, I would now like to talk about the outlook for Japan's economy and the Bank's conduct of monetary policy.