Private consumption is likely to follow an uptrend for the time being, primarily reflecting steady improvement in the employment and income situation, and public investment also is expected to turn to an expansion, mainly against the background of the supplementary budgets.
Looking at respective major countries and regions, in the U.S. economy, private consumption has been firm, partly due to a significant decline in gasoline prices, in addition to a favorable employment situation.
Some members, however, expressed the view that consumer confidence had deteriorated, mainly due to the effects of the hurricanes and of persistently high prices of petroleum products, and private consumption might slow temporarily.
In the U.S. economy, the correction in the housing market is continuing, but business fixed investment and private consumption continue to be on a moderate increasing trend although the pace of increase is decelerating.
In relation to this point, so far, while private consumption had shown mixed developments, plans for business fixed investment in fiscal 1999 had been extremely limited.
The recovery in private consumption continues to be weak as a whole due to lack of notable improvements in employment and income conditions, but there are somewhat positive signs in some indicators.
Euro-area economies seemed to be slowing. Growth in both production and manufacturing orders was declining and the confidence of manufacturers continued to deteriorate, although private consumption remained firm.
Exports will slow and corporate earnings will show little growth, while personal consumption will be hit by a sharp decline in consumer sentiment prompted by stagnating wages and the rising price of daily necessities.
The recovery in private consumption continues to be weak as a whole through lack of notable improvements in employment and income conditions, but there are somewhat positive signs in some indicators.
The recovery in private consumption continues to be weak as a whole through lack of notable improvements in employment and income conditions, although there are somewhat positive signs in some indicators.
Recovery is still fragile, challenged by twin deficits and security issues Although growth in public and private consumption should continue, its pace will remain subdued, due to high unemployment and subsidy reforms aimed at reducing the budget deficit.
Regarding developments in household spending, real private consumption remained on a moderate upward trend in June, increasing by 0.1 percent from the previous month. Automobile sales for July were at high levels due partly to the effects of sales promotion measures.
Overview of the second quarter of the year ending March 2017 The Japanese economy during the company's first half of the fiscal year saw robust progress in employment and income, and while personal consumption bottomed out, the economy leveled out.
China is overwhelmed with many challenges, such as growing debts of local governments and corporations, but personal consumption has shown two-digit growth every year along with China's annual growth in 6-percent range,” the Nikkei said to single out what has been behind the advance of Chinese companies.
In this manner, private consumption has been upheld to some extent by structural and underlying factors over the past few years, and is recently becoming increasingly positive with the growth in income and assets.
Private consumption has been increasing moderately, albeit with fluctuations, against the background of an improvement in the employment and income situation. However, careful attention is warranted on future developments, including those prior to and after the consumption tax hike scheduled for October 2019.
Regarding fiscal 2019 and fiscal 2020, they concurred that the pace of increase in private consumption was projected to be moderate, mainly because it was likely to temporarily turn to a decline due to the effects of the scheduled consumption tax hike in October 2019.
Some members expressed the recognition that, while private consumption generally had been on an increasing trend, business sentiment of manufacturing firms continued to deteriorate and production had shown relatively weak developments, particularly in Germany, mainly due to the effects of the slowdown in the Chinese economy.
However, is likely to continue growing at a rapid pace into next year, as private consumption is expected to increase steadily, generated by higher income levels, while the government will be ready to intervene flexibly to help support the economy.
Specifically, the pace of increase in private consumption is projected to be moderate in fiscal 2019 and fiscal 2020, mainly because it is likely to temporarily turn to a decline due to the effects of the scheduled consumption tax hike in October 2019.
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