Improved consumption key to recovery, BOJ says> Economic growth has been slowing since April and business sentiment has weakened, but there are no signs of a sharp decline in corporate profits, employment and income conditions, the Bank of Japan said Oct. 27.
In its quarterly economic outlook, the central bank also said recovery is likely to gradually gather momentum again if household spending picks up and inventory adjustment pressures steadily subside.
The BOJ said that for sustained recovery, personal consumption needs to improve before the pace of income growth decelerates further. However, the central bank refrained from forecasting when that will happen. In the previous report released in July, the BOJ expressed more optimism, saying the economy was expected to continue recovering.