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Many Bank of Japan branch managers still see the economy in a 'severe situation' in their region due to the impact of Covid-19, with the services sector still worst hit, but noted that some regions and certain sectors were showing signs of recovery, the latest quarterly regional economic report published Thursday showed .
However, the assessment was downgraded by two (Hokuriku and Tohoku), with the remaining seven regions leaving their assessments unchanged on three months ago. There were plenty of bright signs seen over capital investment and exports, but weak spending on services was noted, although demand for goods remained solid.