All nine regions in the Bank of Japan's October Regional Economic Report (Summary) describe their economies as recovering moderately, picking up, or picking up moderately, "although some weakness had been seen in part". The report summarizes the findings of the Bank's regional research divisions, mainly at its branches, and was compiled for the meeting of branch general managers held on October 8. It is an assessment of regional activity, not a policy decision.
Wording changes since July
Three regions changed their overall assessment wording. Tohoku moved from "picking up" in July to "recovering moderately" in October. Shikoku moved from "picking up moderately" to "picking up". Kyushu-Okinawa kept its July assessment but added a cause for its residual weakness, "due mainly to the effects of the 2026 Kumamoto Earthquake". The report marks changes in the pace of improvement or deterioration with arrows, so the wording alone does not establish a formal upgrade or downgrade.
The other six regions kept their July wording. Kanto-Koshinetsu kept its qualifier that weakness is partly due to the impact of the situation in the Middle East.
Investment and jobs hold up
Business fixed investment is the firmest component. Eight regions describe it as increasing, in some cases moderately or on an increasing trend, and Kyushu-Okinawa describes it as at a high level. Employment and income are described as improving, or improving moderately, in every region.
Consumption is described as resilient, firm, picking up or recovering in each region. Four regions, Hokkaido, Hokuriku, Kanto-Koshinetsu and Kyushu-Okinawa, say that price rises are still weighing on it. Kanto-Koshinetsu links its consumption increase to an improvement in the employment and income situation.
Public investment is mixed: Hokuriku and Tokai say it is at a high level, Tohoku and Kinki call it more or less flat, and Hokkaido, Kanto-Koshinetsu and Chugoku report moderate increases.
Housing is the weak line
Housing investment is the component with the most negative descriptions. Tokai and Shikoku call it weak. Hokkaido, Kanto-Koshinetsu, Chugoku and Kyushu-Okinawa call it relatively weak. Tohoku and Hokuriku say it has stopped declining, and Kinki calls it more or less flat.
Production is more varied. Kanto-Koshinetsu says it has turned upward, albeit moderately, and Tokai says it is on an increasing trend. Hokkaido calls it more or less flat with some weakness in part. Kyushu-Okinawa says production has begun to increase moderately, although some weakness remains because of the 2026 Kumamoto Earthquake.