The Bank of Japan raised its economic assessment in four out of nine regions nationwide in its "Regional Economic Report" released on the 12th.
The main reason is that personal consumption has been boosted by the relaxation of movement restrictions due to the new corona and government travel support.
On the 12th, the Bank of Japan held a branch manager meeting once every three months and released the "Regional Economic Report" that summarizes the current state of the national economy.
As a result, of the nine regions nationwide, four regions, Hokuriku, Kanto-Koshinetsu, Kinki, and Kyushu/Okinawa, have raised their economic assessments from the previous report.
The Bank of Japan has voiced concerns among companies about increased costs due to soaring raw material prices, but the impact of parts supply shortages in the manufacturing industry has eased. It is said that personal consumption has been boosted by an increase in the number of tourists and the government's travel support, and a recovery is progressing mainly in the service industry.
On the other hand, the five regions of Hokkaido, Tohoku, Tokai, Chugoku, and Shikoku remained unchanged.
The Bank of Japan will continue to closely monitor developments in overseas monetary policies, movements in raw material prices, and corporate wage increases.
Bank of Japan Osaka Branch Manager "Progress in both control of infectious diseases and economic activity"
Hirohide Takaguchi, head of the Bank of Japan's Osaka branch, said at a press conference that he had raised his economic assessment for the Kinki region in this regional economic report. Although the number has increased, the impact on personal consumption has been limited, department store sales and service consumption have improved, and business sentiment has improved, especially in the non-manufacturing sector.
As for the outlook, he said, "I would like to carefully monitor developments in overseas monetary and fiscal policies, rises in raw material prices and consumer prices, and wage increases."