MNI BRIEF: BOJ: All Regions Report Recovery, Picking Up

All nine Japanese regions reported moderate economic recoveries in the Bank of Japan’s quarterly regional economic report released Thursday, with assessments ranging from “recovering moderately” to “picking up,” although some noted partial weakness.

All regions left their economic assessments unchanged from the previous meeting in April, marking the second straight meeting without revisions.

Private consumption and capital investment were described by regional managers favourably, suggesting that the impact of U.S. trade policy has so far been limited.

These observations align with the broader absence of hard data showing any major damage to the economy from the U.S. tariffs, though attention will turn to upcoming releases that may better capture the policy’s effects.

However, views on production were more mixed. Reports ranged from “weakening” to “increasing” and “flattening,” reflecting that some firms are scaling back output amid elevated uncertainty.

Employment and income conditions were generally described as “improving” or “recovering."