Regional Economic Report (Summary) (April 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.

April 13, 2015
Bank of Japan

Compared with the last assessment in January 2015, six regions (Hokkaido, Tohoku, Kanto-Koshinetsu, Chugoku, Shikoku, and Kyushu-Okinawa) reported that their assessments regarding the pace of economic improvement had remained unchanged, and the other three regions revised their assessments upward by noting that the pace of recovery had accelerated.

All regions reported that the economy had been recovering moderately or recovering, mainly against the background of a pick-up in production assisted primarily by a moderate increase in demand both at home and abroad and of the ongoing steady improvement in the employment and income situation.

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

As for business fixed investment, three regions (Hokkaido, Hokuriku, and Tokai) reported that it was increasing further, three other regions (Tohoku, Kanto-Koshinetsu, and Kinki) noted that it was increasing, or increasing moderately, and the other three regions (Chugoku, Shikoku, and Kyushu-Okinawa) reported that it was picking up. Meanwhile, it was noted that business sentiment had shown somewhat weak movements, mainly in manufacturing, while there were reports that it had continued to be on an improving trend, or had generally stayed 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, despite differences across subregions and industries, four regions (Hokuriku, Tokai, Shikoku, and Kyushu-Okinawa) reported that it was picking up moderately, and four other regions (Tohoku, Kanto-Koshinetsu, Kinki, and Chugoku) noted that it had been resilient as a whole.

As for sales at large retail stores, it was noted that some weakness had been observed in some aspects, while there were reports that sales had been firm, or were picking up moderately.

As for automobile sales, it was noted that recovery had been sluggish, while there were reports that sales had been more or less flat, or had been solid, or that they had shown some signs of 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 had shown some signs of picking up, or that they were recovering moderately.

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

As for housing investment, the Kinki and Kyushu-Okinawa regions reported that it had been weak, while three regions (Hokkaido, Kanto-Koshinetsu, and Chugoku) noted that it had started to bottom out, and the Hokuriku region reported that it had been more or less flat. Meanwhile, three regions (Tohoku, Tokai, and Shikoku) noted that it had been at a high level, or had been resilient as a trend.

As for production (industrial production), mainly on the back of the progress in inventory adjustments in durable consumer goods and other goods, as well as the pick-up in exports, four regions (Hokkaido, Hokuriku, Tokai, and Kinki) reported that it had been at a high level, or was increasing, and four other regions (Tohoku, Kanto-Koshinetsu, Shikoku, and Kyushu-Okinawa) noted that it was picking up, or picking up moderately. Meanwhile, the Chugoku region reported that it had been more or less flat as a whole.

With regard to production by industry, the following developments were reported. Electronic parts and devices and electrical machinery were increasing, or had continued to be at relatively high levels, general-purpose, production and business oriented machinery was increasing moderately, and transportation equipment had moved up to a higher level, or had continued to be more or less flat at a relatively high level. Meanwhile, iron and steel and chemicals had been more or less unchanged.

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 picking up steadily, or increasing moderately.

Appendix: Prefectures Included in Each Region

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