Bank of Japan says country's economy recovering

Japan's central bank, Bank of Japan, said today that all the nine regions of the country are showing signs of economic recovery as Japan emerges from the worst recession since World War II.

Quoting from its October 2009 Regional Economic Report, based on data and other information gathered from all regional research divisions, mainly at the Bank's branches in Japan, the bank said that the economy as a whole showed signs of picking up, although regional differences remained.

Public investment had increased, exports and production picked up, mainly due to progress in inventory adjustments both at home and abroad, it noted.

On the other hand, business fixed investment declined substantially, mainly reflecting weak corporate profits. Private consumption continued to be weak amid the severe employment and income situation, despite the appearance of some policy effects. Housing investment also decreased.

Compared with the assessment in July 2009, all regions revised their assessments, although Hokkaido, Tohoku, Hokuriku, Kinki, and Shikoku continued to report that their economies were in a severe situation.

While some policy effects had appeared in sales of household electrical appliances, such as flat-panel televisions and passenger cars, including hybrid cars, sales at large retail stores continued to be weak, mainly in apparel and accessories.