The Bank of Japan on Monday kept its assessment of the nation's nine regional economies the same in the second quarter amid improving capital investment and employment, despite trouble in China and emerging markets.
It used the phrase “recovering” or “recovering moderately” to describe the state of the regional economies, although exports and output in three of them, including Kanto, were dented by the slowdowns overseas. It warned that the impact on the three economies requires “caution,” a BOJ official said.
The assessment was made after the regions submitted reports on their economic performance. Four of them, including Tokai, home of Toyota Motor Corp., reported that the situation for production was worsening. Output was recently “more or less flat” due mainly to the effects of the slowdown in emerging economies, they said.
Eight of the regions lifted their assessments of housing investment, while most of the nine regions maintained the view that consumption was either picking up or staying resilient as employment and income continue to improve.
The slump in emerging economies has started to affect Japan, raising fears the economy may have suffered another setback in the July-September quarter. It shrank an annualized 1.2 percent in the second quarter.
source by newsonjapan