MNI BRIEF: BOJ: All Nine Regions See Recovery, Pick Up

All nine regions reported that their economies were recovering moderately, picking up, or picking up moderately, although some weakness remained in parts, the Bank of Japan’s quarterly Regional Economic Report said Monday.

Eight of the nine regions kept their economic assessments unchanged from the previous report in July, while Hokkaido downgraded its view.

On exports and production, the BOJ noted reports of weak capital goods orders and a reaction to front-loaded demand ahead of tariff measures.

The report said some firms had postponed capital investment due to high uncertainty over trade policy impacts, while others reduced spending because of rising costs.

Regarding wages, there were reports that some companies were limiting pay increases as profits declined sharply, while others emphasised the need for substantial wage hikes amid persistently high prices. (See MNI POLICY: BOJ Sees No Need To Rush Rate Hikes)

The BOJ also noted that many firms were passing higher labour and distribution costs on to selling prices, though some continued to restrain price hikes and offer lower-priced products.