Jiji PressTOKYO (Jiji Press) — The Bank of Japan on Monday revised up its economic assessments for five of the country’s nine regions, chiefly reflecting production growth and an improvement in personal spending.
The five are the Hokkaido, Kanto-Koshinetsu, Kinki, Chugoku and Kyushu-Okinawa regions, according to a quarterly report released after BOJ branch managers’ meeting.
In the report, the BOJ used the word, “expand” or “expansion,” to describe economic conditions for six regions, including Kanto-Koshinetsu and Tokai, the largest number since the BOJ switched to the current format of the report in 2005.
“At a time when exports and production are becoming strong, private consumption is also becoming firmer,” said an official of the Regional Research Division of the BOJ’s Research and Statistics Department.
In the report, the BOJ revised up its assessments on production for five regions, while upgrading its views on personal consumption for four regions.
The assessments on public investment improved in three regions, while a deterioration was observed in the Kinki region.
The BOJ lowered its assessments on housing investment for four regions, including the Kanto-Koshinetsu, reflecting concerns over an oversupply of houses for rent.
Commenting on the economic situation in the Kinki region, Kimihiro Eto, the BOJ’s Osaka branch manager, said that a supply-demand balance is becoming tight mainly on the job market and that the improvement is expected to continue.
Sho Kotaka, manager of the Sapporo branch, said that although the Hokkaido economy is in a good condition as a whole, gaps in recovery between areas have widened.