Activity Remaining Subdued

The downward trend in industrial output has bottomed out in early 1992. While export growth picked up in January and February this may not yet signal a sustained recovery as sluggishness persists in major foreign markets. Domestic demand growth has abated somewhat except for construction investment which exceeded the level a year ago by one-fifth. Despite the easing of overall demand pressure inflation accelerated to an annual rate of 4¼ percent in March (excluding the seasonal component) while the rise in unemployment came to a halt.