In the Regional Economic Report, BoJ maintained its economic assessment for five out of Japan’s nine regions, while upgrading two and downgrading two. Eight regions, with the exception of Hokuriku, indicated that their economies had been recovering moderately, picking up, or picking up moderately, although some weakness was noted in certain areas.
“Many regions reported that big firms’ big pay hikes in this year’s wage negotiations were spreading to small and medium-sized companies,” BoJ noted. This suggests a positive spillover effect from large corporations to smaller businesses.
BOJ also noted that consumption was “firm as a whole,” driven by robust spending from inbound tourists. This strong tourist spending is helping to offset softer consumption among households affected by rising living costs.
