BOJ’s April 2007 Cherry Blossom Report on Regional Economies

April 19, 2007
By Ken Worsley

Earlier today, the Bank of Japan released its Regional Economic Report for April 2007. The opening of the report states: “According to reports from each of the nine regions in Japan, the economy as a whole expanded moderately as all regions remained on an expansion or recovery trend, although there were regional differences.”

In terms of consumer spending: “Looking at major indicators of consumption, there were reports that sales at large retail stores were increasing mainly for food and beverages, and accessories, while some regions reported sluggish sales of spring apparel due to the unfavorable weather and a drop in sales caused by the earthquake in Hokuriku.”

Employment: “…Most regions reported that the employment situation continues to improve…Most regions reported that household income was either gradually increasing or improving…Hokkaido reported that household income was “sluggish” partly due to the fact that firms continued to restrain labor costs.”

For the Kanto region, which includes Tokyo, private consumption was said to be, “On a gradual increasing trend.” Business investment was described as, “Increasing steadily,” and production was, “On an increasing trend.” Finally, in reference to the labor situation, the BOJ said, “The employment situation continues to improve. Household income continues to increase gradually.”

In the news that stays the same, Reuters tells us that:

Fukui offered few clues on the timing of the next rate increase, repeating his standard line that the central bank will adjust interest rates appropriately by closely examining economic and price conditions.

I’d love to go to meetings and just read my job description out loud.

Filed Under Bank of Japan, Economic Reports