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Regional Economic Report (Summary) (October 2013)*

  • This report summarizes the reports from all regional research divisions, mainly at the Bank's branches in Japan, and is based on data and other information gathered for the meeting of general managers of the Bank's branches held today. The English translation is based on the Japanese original.

October 21, 2013
Bank of Japan

Compared with the last assessment in July 2013, all regions reported upward revisions to their economic assessments from the previous report, with some improvement observed in the employment and income situation, amid firm domestic demand and a moderate increase in production.

Eight regions (Hokkaido, Tohoku, Kanto-Koshinetsu, Tokai, Kinki, Chugoku, Shikoku, and Kyushu-Okinawa) noted that the economy had been recovering or recovering moderately; the Hokuriku region reported that the economy had been picking up steadily.

Table : Regional Economic Report
Region Assessment in July 2013 Changes
from the
previous
assessment1
Assessment in October 2013
Hokkaido The economy has been picking up. upper right The economy has begun to recover moderately.
Tohoku The economy has begun to recover. upper right The economy has been recovering.
Hokuriku The economy has been picking up. upper right The economy has been picking up steadily.
Kanto-Koshinetsu The economy has been picking up. upper right The economy has been recovering moderately.
Tokai The economy has been picking up. upper right The economy has been recovering moderately.
Kinki The economy has been picking up moderately. upper right The economy has been recovering moderately.
Chugoku The economy has been picking up moderately as a whole. upper right The economy has been recovering moderately as a whole.
Shikoku The economy has begun to pick up. upper right The economy has begun to recover moderately.
Kyushu-Okinawa The economy has been picking up. upper right The economy has been recovering moderately.
  1. With regard to the changes from the previous assessment, arrows pointing to the upper right or lower right indicate changes in the pace of improvement or deterioration compared with the previous assessments, respectively. For example, an acceleration in the pace of improvement or deceleration in the pace of deterioration is indicated with an arrow pointing to the upper right. A horizontal arrow pointing to the right indicates that the pace of improvement or deterioration in economic conditions has remained unchanged compared with the previous assessments.

As for public investment, assisted mainly by the effects of various economic measures, three regions (Hokkaido, Tohoku, and Kyushu-Okinawa) reported that it was increasing significantly, and six regions (Hokuriku, Kanto-Koshinetsu, Tokai, Kinki, Chugoku, and Shikoku) noted that it was increasing or had maintained an increasing trend.

Four regions (Hokkaido, Tohoku, Kanto-Koshinetsu, and Tokai) reported that business fixed investment was increasing or increasing moderately, and four regions (Kinki, Chugoku, Shikoku, and Kyushu-Okinawa) noted that it was picking up.  The Hokuriku region noted that it had been resilient.  Meanwhile, many regions reported that business sentiment was improving.

As for private consumption, with some improvement observed in the employment and income situation, six regions (Hokkaido, Hokuriku, Tokai, Kinki, Shikoku, and Kyushu-Okinawa) reported that it was picking up moderately or had shown signs of picking up, and the Kanto-Koshinetsu region noted that it had shown increased resilience, with somewhat strong movements in metropolitan areas.  The Tohoku and Chugoku regions reported that private consumption had been resilient.

As for sales at large retail stores, many regions reported that sales at department stores had continued to show signs of picking up or had been firm, mainly due to firm sales of high-end goods.  Some regions noted that sales at supermarkets had continued to be relatively weak, whereas several regions reported that sales had begun to stop declining or had shown signs of picking up.

Many regions reported that automobile sales were picking up or had been firm, mainly due to the effects of the introduction of new models.

Many regions reported that sales of household electrical appliances had been resilient or had begun to stop declining, supported mainly by firm sales of energy-efficient white goods.

Many regions reported that travel-related demand was picking up or had been firm.  Meanwhile, several regions noted an increase in the number of foreign visitors to Japan.

As for housing investment, seven regions (Tohoku, Kanto-Koshinetsu, Tokai, Kinki, Chugoku, Shikoku, and Kyushu-Okinawa) reported that it was increasing or increasing moderately.  The Hokuriku region noted that housing investment was picking up steadily, and the Hokkaido region reported that it was picking up moderately.

As for production (industrial production), against the background that domestic demand had been firm and also that overseas demand was heading toward a pick-up, four regions (Hokkaido, Hokuriku, Kinki, and Kyushu-Okinawa) reported that it was increasing moderately, and four regions (Tohoku, Kanto-Koshinetsu, Chugoku, and Shikoku) noted that it was picking up.  The Tokai region reported that production had been at a relatively high level.

With regard to production by industry, the following developments were reported.  Transportation equipment had continued to be at a high level or had been on an increasing trend. Electronic parts and devices were picking up moderately, and general machinery was also picking up. Iron and steel were increasing moderately, and chemicals were also increasing.  Meanwhile, metal products had been on an increasing trend, and ceramics, stone and clay had continued to be at a high level.

As for the employment and income situation, many regions reported that supply and demand conditions in the labor market were improving moderately, and several regions noted that household income had shown signs of picking up.

Many regions reported that supply and demand conditions in the labor market were improving moderately.  As for household income, the Shikoku and Kyushu-Okinawa regions reported that it was more or less unchanged, while four regions (Hokkaido, Kanto-Koshinetsu, Tokai, and Kinki) noted that household income had begun to improve or had shown signs of picking up, mainly reflecting increases in bonuses and non-scheduled cash earnings.

Table :
Region Public investment Business fixed
investment
Private
consumption
Housing
investment
Production Employment and income
Hokkaido Increasing significantly as public works orders have become more prevalent, reflecting the effects of various economic measures Increasing moderately Picking up, supported by the improvement in consumer sentiment, together with the moderate improvement in the employment situation Picking up moderately Increasing moderately, against the background of the rise in demand both at home and abroad Supply and demand conditions in the labor market are improving. Household income has begun to pick up, as non-scheduled cash earnings increased and summer bonuses exceeded the previous year's level.
Tohoku Increasing significantly, primarily in construction orders related to the restoration following the earthquake disaster Increasing Has been resilient Increasing, partly due to reconstruction demand stemming from the disaster Picking up moderately The employment and household income situation is improving
Hokuriku Has maintained an increasing trend Has been resilient, particularly in manufacturing Has shown signs of picking up Picking up steadily Increasing steadily The employment and household income situation is picking up
Kanto-Koshinetsu Increasing Has been on an increasing trend, particularly in nonmanufacturing Has shown increased resilience, with somewhat strong movements in metropolitan areas Increasing moderately Picking up Supply and demand conditions in the labor market are improving moderately. Household income has also shown signs of picking up.
Tokai Increasing Increasing further Picking up moderately Increasing Has been at a relatively high level Supply and demand conditions in the labor market are improving. Household income has also begun to improve.
Kinki Increasing Picking up Picking up moderately, assisted mainly by the improvement in consumer sentiment Increasing Increasing moderately Supply and demand conditions in the labor market are improving. In this situation, household income has also shown signs of improvement.
Chugoku Increasing Picking up, particularly in nonmanufacturing Has been resilient Increasing Picking up The employment situation is improving moderately. Household income has been relatively weak, but appears to be heading toward a pick-up.
Shikoku Increasing Picking up Has begun to pick up moderately Increasing Appears to be heading toward a pick-up The employment and household income situation is improving, notably in supply and demand conditions in the labor market
Kyushu-Okinawa Increasing significantly Picking up, particularly in nonmanufacturing Has shown signs of picking up, assisted mainly by the improvement in consumer sentiment Increasing steadily Increasing moderately The employment and household income situation has remained severe, but supply and demand conditions in the labor market are improving, particularly in nonmanufacturing

Appendix: Prefectures Included in Each Region

Table : Appendix: Prefectures Included in Each Region
Region Prefectures
Hokkaido Hokkaido
Tohoku Aomori, Iwate, Miyagi, Akita, Yamagata, and Fukushima
Hokuriku Toyama, Ishikawa, and Fukui
Kanto-Koshinetsu Ibaraki, Tochigi, Gunma, Saitama, Chiba, Tokyo, Kanagawa, Niigata, Yamanashi, and Nagano
Tokai Gifu, Shizuoka, Aichi, and Mie
Kinki Shiga, Kyoto, Osaka, Hyogo, Nara, and Wakayama
Chugoku Tottori, Shimane, Okayama, Hiroshima, and Yamaguchi
Shikoku Tokushima, Kagawa, Ehime, and Kochi
Kyushu-Okinawa Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima, and Okinawa

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