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116972
Fri, 04/16/2010 - 08:50
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https://www.oananews.org//node/116972
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BOJ raises assessments for 7 out of 9 regional economies+
TOKYO, April 15 Kyodo -
The Bank of Japan on Thursday raised its assessments for seven of the nation's
nine regional economies as Japan's economic recovery continues amid
strengthening demand in emerging economies and the government's stimulus
measures.
In its quarterly Sakura Report on regional economies, the central bank said the
economies of Hokkaido, Tohoku, Hokuriku, Kanto-Koshinetsu, Tokai, Kinki and
Chugoku have all seen improvements from three months earlier. The BOJ left
unchanged its assessment for the Shikoku and Kyushu-Okinawa regions in
southwestern Japan.
The latest report shows that improvements in regional economies are gaining
momentum. In its previous report released in January, the BOJ upgraded
assessments for four of the nine regions and left unchanged its evaluations for
the remaining five.
The BOJ is scheduled to release a long-term outlook for the nation's entire
economy and prices on April 30.
In the latest report, the central bank said that all of the regional economies
showed signs of recovery, but added, ''There remained differences in the pace
and extent of the recovery.''
BOJ Governor Masaaki Shirakawa said in remarks at the start of the BOJ's
quarterly meeting of branch managers, ''Although the momentum for a
self-sustaining recovery in domestic private demand remains weak, our country's
economy has been picking up thanks to improvements in overseas economies and
various stimulus measures.''
''Corporate business sentiment has been improving and the shift is spreading to
wider areas,'' the BOJ chief said, adding that the risk of Japan falling into a
double-dip recession has receded ''significantly.''
The central bank holds a meeting with managers from its 32 branch offices every
three months to grasp the state of regional economies in order to steer
monetary policy. After the meeting, it releases the Sakura Report, akin to the
U.S. Federal Reserve's Beige Book.
The report, with a pink-colored front cover reminiscent of cherry blossoms,
said all nine regions saw positive effects from the government's stimulus
measures for the purchase of cars and consumer appliances, although the Shikoku
and Kyushu-Okinawa regions reported slower improvement in car sales.
Corporate capital investment is generally ceasing to fall, the report said.
Some major export-oriented manufacturers are boosting capital spending but
domestic demand-related manufacturers, such as those in the food and paper
industries, remain reluctant to make such investments to cope with sluggish
domestic demand, the report added.
A recovery in capital spending is likely to become clearer as increased exports
are expected to boost corporate earnings, the report said. But the pace of
recovery may be ''moderate'' considering major manufacturers' recent attempts
to relocate a part of their production bases outside of Japan to cope with
future demand growth overseas, it said.
Production improved in every region compared with three months earlier, but
most regions reported severe employment and income conditions.
Yoshiki Tanji, head of the BOJ's Fukuoka branch in the Kyushu region, said that
although sales of some luxury items are beginning to pick up, the prospects for
a full-fledged recovery in consumption will hinge on the employment conditions
of middle-income consumers.
Junichi Maeda, head of the Nagoya branch in Aichi Prefecture, the home of
Toyota Motor Corp., said business sentiment in the Tokai region, centering on
the prefecture, has improved sharply with growing demand for cars in China
making a large contribution to the increase in the region's auto exports.
''Compared with the manufacturing sector, the recovery in the nonmanufacturing
sector is still patchy, but the number of industries seeing an improvement is
increasing,'' he said.
Maeda added he wants to carefully monitor the effects of Toyota's massive
vehicle recalls at home and abroad as well as the planned end in September of
government subsidies for the purchase of energy-efficient cars on the region's
mainstay auto business.
==Kyodo
The Bank of Japan on Thursday raised its assessments for seven of the nation's
nine regional economies as Japan's economic recovery continues amid
strengthening demand in emerging economies and the government's stimulus
measures.
In its quarterly Sakura Report on regional economies, the central bank said the
economies of Hokkaido, Tohoku, Hokuriku, Kanto-Koshinetsu, Tokai, Kinki and
Chugoku have all seen improvements from three months earlier. The BOJ left
unchanged its assessment for the Shikoku and Kyushu-Okinawa regions in
southwestern Japan.
The latest report shows that improvements in regional economies are gaining
momentum. In its previous report released in January, the BOJ upgraded
assessments for four of the nine regions and left unchanged its evaluations for
the remaining five.
The BOJ is scheduled to release a long-term outlook for the nation's entire
economy and prices on April 30.
In the latest report, the central bank said that all of the regional economies
showed signs of recovery, but added, ''There remained differences in the pace
and extent of the recovery.''
BOJ Governor Masaaki Shirakawa said in remarks at the start of the BOJ's
quarterly meeting of branch managers, ''Although the momentum for a
self-sustaining recovery in domestic private demand remains weak, our country's
economy has been picking up thanks to improvements in overseas economies and
various stimulus measures.''
''Corporate business sentiment has been improving and the shift is spreading to
wider areas,'' the BOJ chief said, adding that the risk of Japan falling into a
double-dip recession has receded ''significantly.''
The central bank holds a meeting with managers from its 32 branch offices every
three months to grasp the state of regional economies in order to steer
monetary policy. After the meeting, it releases the Sakura Report, akin to the
U.S. Federal Reserve's Beige Book.
The report, with a pink-colored front cover reminiscent of cherry blossoms,
said all nine regions saw positive effects from the government's stimulus
measures for the purchase of cars and consumer appliances, although the Shikoku
and Kyushu-Okinawa regions reported slower improvement in car sales.
Corporate capital investment is generally ceasing to fall, the report said.
Some major export-oriented manufacturers are boosting capital spending but
domestic demand-related manufacturers, such as those in the food and paper
industries, remain reluctant to make such investments to cope with sluggish
domestic demand, the report added.
A recovery in capital spending is likely to become clearer as increased exports
are expected to boost corporate earnings, the report said. But the pace of
recovery may be ''moderate'' considering major manufacturers' recent attempts
to relocate a part of their production bases outside of Japan to cope with
future demand growth overseas, it said.
Production improved in every region compared with three months earlier, but
most regions reported severe employment and income conditions.
Yoshiki Tanji, head of the BOJ's Fukuoka branch in the Kyushu region, said that
although sales of some luxury items are beginning to pick up, the prospects for
a full-fledged recovery in consumption will hinge on the employment conditions
of middle-income consumers.
Junichi Maeda, head of the Nagoya branch in Aichi Prefecture, the home of
Toyota Motor Corp., said business sentiment in the Tokai region, centering on
the prefecture, has improved sharply with growing demand for cars in China
making a large contribution to the increase in the region's auto exports.
''Compared with the manufacturing sector, the recovery in the nonmanufacturing
sector is still patchy, but the number of industries seeing an improvement is
increasing,'' he said.
Maeda added he wants to carefully monitor the effects of Toyota's massive
vehicle recalls at home and abroad as well as the planned end in September of
government subsidies for the purchase of energy-efficient cars on the region's
mainstay auto business.
==Kyodo
