MNI POLICY: BOJ: All 9 Regions Cut Econ Assessment From April

--Second Straight Meet All Nine Regions Cut View

     TOKYO (MNI) - All nine of Japan's regions lowered their economic assessment

from three months ago, as the coronavirus impacted personal spending, production

and capital investment, the Bank of Japan's quarterly regional economic report

showed Thursday.

     It is the second straight time that all nine regions lowered their

assessment from their previous meeting.

     "According to assessments from regions across Japan, all nine regions

revised down their assessments from the previous ones, as was the case in April

2020,due to the impact of the novel coronavirus (COVID-19), and reported that

their economy had deteriorated or had been in a severe situation," the July

report said.

     Many branch managers noted the drop in the three main sectors and the

reports are consistent with the results of the BOJ June Tankan business

sentiment survey, which showed corporate sentiment worsened from three months

ago.

     --RELATED EXPORTS

     --Amongst comments from firms surveyed, exports dropped sharply in the wake

of weak demand for automobiles - a transport equipment firm.

     -Capital investment linked to automobiles is expected to further fall as

orders fell - a machine company.

     --Exports of automobiles to the U.S. had fallen sharply. Demand is expected

to recover but it takes time due to inventories - a transport equipment firm.

     --PERSONAL SPENDING, INBOUNDS

     --Demand for clothes is recovering following self-control or containment

measures - a department store.

     -Demand for food is picking up as the state of emergency was lifted and

schools resumed - a supermarket store.

     --Consumer saving will likely increase due to downward pressure on wages

and labor market condition - a supermarket store.

     It takes some time for foreign tourists to return due to government

immigration restriction and is necessary to be focused on the wealth, a

department store.

     --LABOR, INCOME

     --There are employed who left amid falling wages and concern over the

infectious disease, accommodation.

     --Students moved to retail from accommodation and eating and drinking

services - a convenience store.

     --The company had increased wages to find employment but plans to lower

bonuses in the wake of the drop or profits caused by the coronavirus - a retail

store.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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