Looking at the manufacturers' output forecasts for January and February, even if the March figures are flat, we should see output be positive again in January-March.

Although the disaster of Hurricane Katrina in the United States and the spike in crude oil prices may temporarily hit the Japanese economy in the July-September period, it will probably grow back in the October-December quarter.

The government may not be able to stop the BOJ from shifting policy after all the speculation that's been built up in financial markets.

Governor Fukui and other Bank of Japan senior officials have strengthened their tone recently and show no signs of letting up.

Koizumi's major victory in the election may push forward discussions on raising the consumption tax. But Koizumi is unlikely to change his stance of not raising the tax during his tenure, so any tax increase would be after 2007.

We look for a rebound due to the recycling of oil money, such as in high-ticket orders from oil-producing nations.

We expect the economy to enjoy a lasting recovery. It was a good report overall and it's encouraging to see both manufacturers and non-manufacturers are increasing spending.

It finally looks realistic to believe we are seeing the end of deflation.