Regional Economic Report (Summary) (October 2015)^*

• 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 19, 2015
Bank of Japan

Compared with the last assessment in July 2015, all regions reported that their assessments regarding the pace of economic improvement had remained unchanged.

All regions reported that the economy had been recovering moderately or recovering, primarily as, on the domestic demand side, business fixed investment had been on a moderate increasing trend and private consumption had been resilient against the background of steady improvement in the employment and income situation, although exports and production had been affected mainly by the slowdown in emerging economies.

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, the Kinki region reported that it was increasing, and three regions (Tohoku, Kanto-Koshinetsu, and Shikoku) noted that it had been more or less flat, although it remained at a high level.  On the other hand, five regions (Hokkaido, Hokuriku, Tokai, Chugoku, and Kyushu-Okinawa) reported that it was on a declining trend, although it remained at a high level, or was declining moderately.

As for business fixed investment, three regions (Hokkaido, Hokuriku, and Tokai) reported that it was increasing further, or increasing significantly, five regions (Kanto-Koshinetsu, Kinki, Chugoku, Shikoku, and Kyushu-Okinawa) noted that it was increasing moderately, or increasing, and the Tohoku region reported that it had been firm.  Meanwhile, it was noted that business sentiment was deteriorating somewhat, while there were reports that it was improving, or had generally been at a favorable level.

As for private consumption, with the employment and income situation continuing to improve steadily, the Hokkaido region noted that it was recovering, four regions (Hokuriku, Tokai, Shikoku, and Kyushu-Okinawa) reported that it was picking up moderately, or picking up, and four other regions (Tohoku, Kanto-Koshinetsu, Kinki, and Chugoku) noted that it had been resilient, or had been firm as a whole.

As for sales at department stores and supermarkets, many regions reported that they had been firm, or were picking up moderately, or picking up.

As for automobile sales, it was noted that recovery had been sluggish, while there were reports that sales had recently begun to bottom out, or had been solid, or were picking up.

As for sales of household electrical appliances, it was noted that recovery had been sluggish, while there were reports that sales had been solid, or were picking up, or were recovering moderately.

As for travel-related demand, it was reported that demand had been more or less flat, or had been solid, primarily in domestic travel, or had been firm as a whole.  Meanwhile, several regions noted that the number of foreign visitors to Japan had continued to increase.

As for housing investment, the Tohoku region reported that it was increasing, mainly in owner-occupied houses, and seven regions (Hokkaido, Hokuriku, Kanto-Koshinetsu, Tokai, Chugoku, Shikoku, and Kyushu-Okinawa) noted that it was picking up, or had begun to pick up.  The Kinki region reported that it had bottomed out.

As for production (industrial production), five regions (Tohoku, Kanto-Koshinetsu, Tokai, Chugoku, and Kyushu-Okinawa) reported that it had recently been more or less flat, due mainly to the effects of the slowdown in emerging economies.  Meanwhile, four regions (Hokkaido, Hokuriku, Kinki, and Shikoku) reported that it was picking up moderately, or had been at a high level, or was increasing.

With regard to production by industry, the following developments were reported.  Transportation equipment had been more or less flat. General-purpose, production and business oriented machinery, electronic parts and devices, and electrical machinery were increasing moderately, while there were reports that they had been relatively weak.  Meanwhile, chemicals had been at a high level, while iron and steel had continued to cut back on production.

Many regions reported that the employment and income situation was improving.

Many regions reported that supply and demand conditions in the labor market had continued to improve steadily.  As for household income, many regions noted that it was improving steadily, or increasing moderately.

Appendix: Prefectures Included in Each Region

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Regional Research Division, Research and Statistics Department

Tel : +81-3-3277-1357