The economy is recovering, while some weaknesses are seen.

Corporate profit improvement appears to be pausing and business investment is increasing moderately.
The employment improvement appears to be pausing recently while some severe aspects remain.
Private consumption is almost flat.
Housing construction remains at a low level while showing a pick up.
Exports are increasing and industrial production is increasing moderately.

As for short-term prospects, the economic recovery is expected to continue while corporate sector remains solid. On the other hand, attention should be given to downside risks to the U.S. economy and the fluctuations in the financial and capital markets mainly caused by the subprime mortgage loan problem, and effects of developments of oil prices on the Japanese economy and overseas economies.


Available at:

http://www5.cao.go.jp/keizai3/getsurei-e/2008jan.html