Asia

Thursday, July 9, 2020 - 01:36

MNI POLICY: BOJ: All 9 Regions Cut Econ Assessment From April


--Second Straight Meet All Nine Regions Cut View

TOKYO (MNI) - All nine of Japan's regions lowered their economic assessment from three months ago, as the coronavirus impacted personal spending, production and capital investment, the Bank of Japan's quarterly regional economic report showed Thursday.

It is the second straight time that all nine regions lowered their assessment from their previous meeting.

"According to assessments from regions across Japan, all nine regions revised down their assessments from the previous ones, as was the case in April 2020,due to the impact of the novel coronavirus (COVID-19), and reported that their economy had deteriorated or had been in a severe situation," the July report said.

Many branch managers noted the drop in the three main sectors and the reports are consistent with the results of the BOJ June Tankan business sentiment survey, which showed corporate sentiment worsened from three months ago.

--RELATED EXPORTS

--Amongst comments from firms surveyed, exports dropped sharply in the wake of weak demand for automobiles - a transport equipment firm.

-Capital investment linked to automobiles is expected to further fall as orders fell - a machine company.

--Exports of automobiles to the U.S. had fallen sharply. Demand is expected to recover but it takes time due to inventories - a transport equipment firm.

--PERSONAL SPENDING, INBOUNDS

--Demand for clothes is recovering following self-control or containment measures - a department store.

-Demand for food is picking up as the state of emergency was lifted and schools resumed - a supermarket store.

--Consumer saving will likely increase due to downward pressure on wages and labor market condition - a supermarket store.

It takes some time for foreign tourists to return due to government immigration restriction and is necessary to be focused on the wealth, a department store.

--LABOR, INCOME

--There are employed who left amid falling wages and concern over the infectious disease, accommodation.

--Students moved to retail from accommodation and eating and drinking services - a convenience store.

--The company had increased wages to find employment but plans to lower bonuses in the wake of the drop or profits caused by the coronavirus - a retail store.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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