MNI BRIEF: BOJ Regions See Signs Of Economic Upturn

Many Bank of Japan branch managers see a moderate economic recovery in their regions, with four out of nine regions upgrading their assessment from October the Bank of Japan quarterly regional economic report published Thursday showed. No regions reported a downgraded outlook.

“According to assessments from regions across Japan, many of them reported that their respective economies, despite being affected by factors such as high commodity prices, had been picking up or had been picking up moderately, as the effects of supply-side constraints had waned and as the resumption of economic activity had progressed while public health had been protected from the novel coronavirus,” the BOJ said.

Many managers noted that private consumption remained solid, supporting the central bank's view it will not be impacted by high prices, although it remains closely watched for signs of deterioration. Managers also said that capital investment remained solid or increased, but reported a mixed view on production.