Economic Situation

Japan's GDP for the July-September period was revised downward from a 1.6% contraction reported in preliminary data to a 1.9% shrinkage. There has been a lack of strength in the resumption of personal consumption since the sales tax rate hike, but there is an aspect that the positive move of the draw down of inventory has kept lowering the growth rate. The economy is not as bad as the figure, minus 1.9% suggests. Capital spending is on the increase as corporate statistics shows. The recent downward revision was quite unexpected.

I am confident that the economy will return to positive growth in the October-December period owing to good business performances, steady improvement in many areas in the job market and an increase in income. It is important to secure a recovery trend by expanding a virtuous economic cycle so that all the people can feel the growth real. It is essential for the whole nation to make an all-out effort together to make it happen. Companies will make more profits to increase jobs and reward working people with pay raise realizing a virtuous economic cycle.