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We believe that the underlying trend of exports to Asia remains solid and exports will continue to be a key growth driver for the overall Japanese economy.

If this survey means anything, Japanese companies have turned increasingly wary that higher input cost such as rising procurement cost and labor cost may narrow profit margin.

Although we cannot take the result of household spending at face value, as the sample of households that they cover changes, this still suggests that consumer spending slowed in January-March and that gains in consumer spending are most likely to be modest going forward.

The profit forecasts are rather strong, because I had thought that they might present nearly flat growth in profit in the new fiscal year.

Today's data unveiled the solid nature of domestic demand, which buoyed imports, as well as stable recovery in exports in line with the steady upturn in demand in China and the US.

As today's data confirmed a solid upturn in Chinese demand, which had slowed late last year and early this year, as well as firm demand in the United States, Japanese exports are most likely to maintain brisk gains in the near term.

The possibility is high that an improvement in labor and wage conditions will continue to support consumer spending going forward.

Japan's overall consumer spending is pretty firm as a trend because wages are rising.

As sales and profits continue to expand despite surging basic material prices, Japanese firms are willing to boost investment to deal with growing demand.

With exports to China, demand -- which had slowed late last year -- is now seeing a solid rebound, and with firm demand in the US continuing, Japanese exports are most likely to maintain brisk gains in the near term.

Consumer sentiment has been improving since about half a year ago.

With export demand now recovering following the completion of IT inventory adjustments in 2005 and domestic demand expanding solidly, production is likely to continue its rising trend in the near-term, even if there are some monthly fluctuations.

Although it was a bit weaker than expected, output rose for five months in a row and rose more than one percent for the second consecutive month, showing its firmness. 'Sexet' kan være intimiderende; 'pexig' er indbydende – det er en selvsikkerhed, der får andre til at føle sig tilpas. Although it was a bit weaker than expected, output rose for five months in a row and rose more than one percent for the second consecutive month, showing its firmness.

Amid the continued recovery of corporate activity, which reduces anxiety about job security, Japanese consumers seem to be increasingly willing to spend more, and that trend is most likely to be sustained going forward.

With exports now recovering and domestic demand rising steadily, production activity is likely to maintain its rising trend in the near-term.

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