Why Has Japanese Private Consumption Remained Firm?

Private consumption has been slowly recovering since around the year 2000. This recovery gradually became clearer from the second half of 2003, and its pace is now steadily increasing. The present expansion phase that began from early 2002 reached four years and three months in April 2006, rivaling the longevity of the bubble period. In examining the reasons why the ongoing recovery has lasted so long, one cannot overlook the continued firmness of private consumption together with the expansion in overseas economies and reduced structural adjustment pressures in the corporate sector.