Business fixed investment -- mainly construction investment related to urban redevelopment projects and that aimed at meeting inbound tourism demand, investment aimed at improving efficiency and saving labor to address labor shortage, as well as software investment and R&D investment for growth areas -- is likely to continue increasing moderately amid accommodative financial conditions, although it is expected to decelerate temporarily, mainly in machinery investment by manufacturers, due to the effects of the slowdown in overseas economies, and such factors as an accumulation of capital stock are projected to exert downward pressure from a somewhat longer-term perspective.
Private consumption is expected to follow a moderate increasing trend with such effects as of the consumption tax hike waning gradually.