MNI BRIEF: BOJ: Many Branches See Recovery Underway

Many Bank of Japan branch managers said their regional economy remained in a severe situation due to the impact of Covid-19, although many said there were signs of a recovery, the bank's quarterly regional economic report released Monday showed. The economic assessment was upgraded by two regions (Hokuriku and Kinki) and the assessment was lowered by two (Chugoku and Shikoku), with the remaining five regions leaving their assessment from three months ago.

Many managers pointed out bright signs for capital investment and production but many reported weak spending on services, although demand for goods remained solid, Comments from regional firms included:

-Orders of semiconductor parts are near a historical high on the back of solid digital-related demand, an electronic and device firm said.

-Production and orders of chip-making equipment continued rising, a production machine firm said.

-Orders of new-model automobiles solid but delivery of new vehicles is delaying about six months due to the shortage of semiconductors, automobile company said.