New vehicle demand in the US is poised to peak out sooner rather than later, which may weigh on demand for Japanese (automobiles).

New vehicle demand in the US is bound to peak out this year, which may slow output for Japanese (automobile) makers, although to a much lesser extent than US makers.

There is uncertainty over the trend of imports of IT (information technology) goods in the US, where IT investment is running at a historically high level,

Due to lingering reconstruction demand in areas that were hit by hurricanes last year and brisk demand for Japanese cars that have better fuel efficiency, exports to the US are likely to be solid until around mid-2006.

As Japanese companies can no longer absorb the entire negative impact of rising basic material prices with revenue growth, corporate profit trend will slow down further going forward.

Overseas demand for autos, IT goods and construction machinery which had long supported the overall economic activity in Japan, is now set to slow down, while input cost for Japanese companies is rising.