This report covers the Regional Economic Report (Sakura Report) published by the Bank of Japan on July 10, 2025, detailing economic assessments for all nine regions of Japan and economic trends by demand category.
Key Points
1. Overall Economic Assessment for Nine Regions
- All regions assess their economies as "recovering moderately," "picking up," or "picking up moderately"
- Compared to previous report (April 2025), all 9 regions show "unchanged" assessments
- Five regions include phrase "some signs of weakness": Hokkaido, Hokuriku, Kanto-Koshinetsu, Kinki, and Kyushu-Okinawa
- Hokuriku region particularly notes "significant increase due to restoration and reconstruction projects" reflecting Noto Peninsula earthquake recovery demand
- Based on information collected for branch managers' meeting
2. Public Investment Trends
- Hokkaido, Tokai: "Remaining at high levels"
- Hokuriku: "Increasing significantly due to restoration and reconstruction projects" (Noto Peninsula earthquake-related)
- Kanto-Koshinetsu: "Increasing moderately"
- Chugoku: "Remaining at high levels"
- Tohoku, Shikoku: "Picking up"
- Kyushu-Okinawa: "Increasing"
- Kinki: "Remaining flat" (only region with flat assessment)
3. Business Investment and Personal Consumption
- Business investment: "Increasing" in 8 regions, only Hokkaido shows "increasing moderately"
- Hokuriku shows "moderate increasing trend," Kyushu-Okinawa "remaining at high levels"
- Personal consumption: Recovery/increasing trend in all regions despite impact of price increases
- Kanto-Koshinetsu: "Increasing moderately, supported by inbound demand"
- Hokkaido, Kyushu-Okinawa: "Remaining firm despite impact of rising prices"
4. Housing Investment and Production Trends
- Housing investment: 8 regions show "weak movement," "weakness," or "softening"
- Only Hokuriku shows improvement: "picking up moderately with restoration demand"
- Production: Mainly flat (Hokkaido, Kanto-Koshinetsu, Kinki, Chugoku, Kyushu-Okinawa)
- Kanto-Koshinetsu notes: "Rush demand observed due to US tariff increases"
- Only Tokai shows "increasing trend"
5. Employment and Income Environment Improvement
- All 9 regions assess as "improving moderately" or "improving"
- Tohoku, Kyushu-Okinawa: "Improving" (stronger improvement than other regions)
- Other 7 regions: "Improving moderately"
- Nationwide improvement in employment and income environment continues
- Small regional disparities with solid employment conditions nationwide
The report indicates that while regional differences exist, the Japanese economy maintains a moderate recovery trend overall, with particularly strong business investment and improving employment/income conditions, while housing investment weakness remains a common challenge.