Consumption tax rate increase “Concerned about the impact of local companies” BOJ Regional Economic Report October 15 17:47
On the 15th, the Bank of Japan announced the current state of each region's economy in a “Regional Economic Report”. Regarding the increase in the consumption tax rate that started this month, companies in each region seemed to have little rush demand and subsequent reaction, but it turned out that they were worried about the increased interest in savings and the worsening profits caused by price cuts.
The Bank of Japan held a branch manager meeting once every three months on the 15th, announced the current state of the economy in nine regions nationwide as a “regional economic report”, and compiled the main opinions of companies on raising the consumption tax rate .
Among them, the rush demand before the tax increase was conspicuous for expensive products such as home appliances and jewelry, but there are many voices that the scale is small compared to the previous tax rate increase five years ago.
In addition, there are many views that the decline after the tax increase due to the reaction is small, but retailers and restaurants say that consumers are more saving-oriented and customers flow to stores that are eligible for point returns, or `` low price competition Are concerned that this could have a negative impact on earnings. "
On the other hand, regarding economic judgment in each region,
Hokkaido raised its judgment from “gradual recovery” to “moderate expansion”, and the eight regions left the previous three months' determination of “expansion” and “recovery”.
However, in Hokkaido, Kinki, Shikoku, Kyushu and Okinawa, it is pointed out that the effects of the consumption tax hike are appearing in personal consumption.
Osaka Branch Manager “The impact of the tax increase needs careful confirmation”
Regarding the impact of the consumption tax hike, Yasuhiro Yamada, branch manager of the Bank of Japan Osaka branch, said at the interview after the branch manager meeting, `` Demand for rushing into high-priced items such as home appliances and jewelry has been seen, but a decline due to a reaction is expected. The demand for products tends to increase toward the end of the year, and due to the effects of the government's economic measures, the impact of the increase in the consumption tax rate seems to be small compared to the previous five years ago. "We need to carefully check the impact of the tax increase in the data."