The Bank of Japan maintained its assessment Monday on seven of nine regional economies from October, while upgrading the view on the Tokai area in central Japan on the back of an increase in automobile production and solid employment conditions.
The central bank said the economy of the Tokai region — home to Toyota Motor Corp. — has been “expanding at a moderate pace.” It is the first time since April 2008 that the wording “expansion” was used to describe the state of regional economies, according to a BOJ official.
By contrast, the BOJ cut the view on the economy of the Kinki region centering on Osaka because of flattening production activity amid a slowdown in the Chinese economy.
In addition to the Kinki area, the assessment on production was revised down in the Hokkaido and Tohoku regions, the BOJ said.
All nine regional economies kept intact the view on capital investment and personal spending, with eight regions reporting that the economy had been recovering moderately or had continued to recover.
The results came as Japanese and overseas stocks are sliding considerably and the yen has been firming against the U.S. dollar amid concerns about an outlook of the Chinese economy and plunging crude oil prices haunted by oversupply worries.
Japan’s consumer spending has been sluggish, as warm weather has hurt sales of winter clothing, while a growth in real wages remains subdued.