Japan's economy is starting to recover moderately. As for overseas economies, while the manufacturing sector continues to show a lackluster performance, they are gradually heading toward a pick-up as a whole.
- In this situation, exports have been picking up.
- Business fixed investment has stopped weakening and shown some signs of picking up as corporate profits have improved.
- Public investment has continued to increase, and the pick-up in housing investment has become evident.
- Private consumption has remained resilient, assisted by the improvement in consumer sentiment. Reflecting these developments in demand both at home and abroad, industrial production is increasing moderately.
- Business sentiment has been improving. Meanwhile, financial conditions are accommodative.
- On the price front, the year-on-year rate of change in the consumer price index (CPI, all items less fresh food) is currently 0 percent.
- Some indicators suggest a rise in inflation expectations.
