The slowdown in recurring profits reflects rising material costs in manufacturing and higher personnel costs in non-manufacturing. |
There is robust demand for Japanese goods from the U.S. and Asia. |
We anticipate Japanese companies will try to compete in hiring good workers, driving up wages. Improving employment and rising wages will support demand, prop up economic growth and spur inflation. |
With economic growth being driven by consumer spending, the Bank of Japan will want to end quantitative easing soon to avoid the risk of the economy overheating. |