This article analyzes economic trends in the six Tohoku region prefectures (Aomori, Iwate, Akita, Miyagi, Yamagata, Fukushima) published by the Bank of Japan Sendai Branch in July 2025.
The economy in the Tohoku region is picking up, with detailed trends shown for each demand item. Equipment investment is increasing, with the June Tankan (Tohoku region) showing capacity expansion investment, new product development investment, labor-saving investment, and new store openings for 2025. Personal consumption is recovering gradually, with drugstores increasing, convenience stores picking up gradually, new passenger car registrations also picking up, while department stores show weak movements and home centers are decreasing. Housing investment is decreasing, with housing starts declining for owner-occupied, rental, and for-sale units.
On the production side, mining and manufacturing production is picking up, with transportation machinery recovering by major industry, production machinery etc. recovering gradually, electronic parts and devices picking up, while food products move within a flat range. Employment and income environment is improving, with labor supply and demand in a tight state and employee income increasing with variations by industry. On the price front, consumer prices (excluding fresh food) exceed the previous year, and financially, deposits are roughly at the previous year level for both individuals and corporations, loans exceed the previous year due to increases in individual and corporate loans, and lending rates are rising.
The article shows that while the economy in the Tohoku region tends to be picking up with increases in equipment investment and gradual recovery in personal consumption, there are also some weak movements such as decreasing housing investment.