This article analyzes the financial and economic outlook for the Kyushu and Okinawa region published by the Bank of Japan Fukuoka Branch in July 2025.
The economy of Kyushu and Okinawa is recovering gradually, although some areas show weakening movements. In final demand trends, personal consumption remains solid despite being affected by price increases, with department store sales at high levels but recently falling below the previous year, supermarket sales moving steadily, convenience store sales progressing solidly, new passenger car registrations picking up, and travel and tourism increasing. Housing investment is weakening, with new housing starts in May falling below the previous year mainly due to decreased rental housing. Public investment is increasing, with public works contracts in June exceeding the previous year mainly due to increased municipal orders.
Equipment investment continues at high levels, with the June Tankan (Kyushu-Okinawa region) showing 2025 equipment investment plans (excluding electricity and gas) above the previous year, while May private non-residential building construction floor area fell below the previous year. Exports show weakening movements, with June export value (Kyushu economic area) falling below the previous year. On the production side, mining and manufacturing production moves within a flat range, with automobiles bottoming out by sector, shipbuilding increasing, electronic parts and devices maintaining high levels but with some weakening movements, general-purpose, production, and business machinery seeing a pause in recovery movements, chemicals picking up, steel and non-ferrous metals weakening, and food products decreasing with fluctuations.
Employment and income conditions are improving, with the effective job opening ratio maintaining high levels and total employee income in April exceeding the previous year due to increases in cash salaries and regular employees. On the price front, consumer prices (Kyushu region, excluding fresh food) in June were +3.8% year-on-year. Financially, deposit balances in May exceeded the previous year centered on individual deposits, loan balances also exceeded the previous year centered on corporate and individual loans, and corporate bankruptcies in June showed both numbers and total liabilities below the previous year, moving within a flat range.
The article shows that while the Kyushu-Okinawa region's economy is on a gradual recovery trend, some areas show weakening movements such as weak exports and flat production trends.