July 24, 2019
The Ministry of Economy, Trade and Industry (METI) has compiled the results of the regional economic and industrial research that the regional Bureaus of Economy, Trade and Industry conduct on a quarterly basis to identify regional economic trends, and METI hereby releases the results.
[Highlights of the results]
The assessment of the national economic situation remains the same as that in the previous quarter. It is “improving moderately although some businesses show weakness.”
Compared to the previous quarter, the assessment of regional economic conditions has been revised upward in the Kinki and Chugoku regions and has remained the same in other regions.
1. Regional Economic and Industrial Research
The regional Bureaus of Economy, Trade and Industry survey enterprises in their service areas using interviews and other survey techniques on a quarterly basis for the purpose of identifying economic trends in the areas, such as those related to business conditions, production, and investment in facilities, and they collect and analyze the survey results.
- Survey period: From May 31 to June 28, 2019
- Number of target companies: 775
2. General summary
Improving moderately although some businesses show weakness (no change)
Production shows weakness in smartphone-related and other products in the electronic parts and devices industry affected by the economic slowdown in China and other countries and other factors, while it remains at a high level in the transportation equipment industry and continues to hold firm in the production machinery industry. Business investment continues to show an increasing tendency in the investment for improving laborsaving equipment and other facilities in order to enhance production capacity to allow for receiving more orders and to overcome labor shortages. The employment situation remains at a high level in the jobs-to-applicants ratio. Private consumption maintains brisk sales in luxury goods, while some show weak performance.
3. Regional summaries
[Hokkaido] Picking up moderately (no change)
Production shows slight weakness due to the review of the production systems of oil products and other factors. Private consumption is picking up due to the steady movements in food and beverages. As for tourism, private consumption shows briskness in domestic customers thanks to the Golden Week holidays, while consumption by overseas tourists to Japan continues to be steady.
[Tohoku] Showing some pause although some businesses are picking up (no change)
Production is seesawing since the electronic parts and devices industry shows sluggishness in smartphone-related products, while the production machinery industry shows steady performance mainly in semiconductor-related products. The transportation equipment industry is picking up. Private consumption is at a standstill as a whole, while some movements are seen in automobiles and luxury goods.
[Kanto] Improving moderately (no change)Production has maintained its seesawing tendency with the electronic parts and devices industry showing sluggishness due to the continuous impact of international situations and other factors, while the demand in the transportation equipment industry shows steadiness. The employment situation is steadily improving, while businesses continue to face a labor shortage. Private consumption is moderately picking up while some differences are seen between different types of industries.
[Tokai] Improving (no change)
Production shows a decrease in the electronic parts and devices industry, while remaining at a high level in the transportation equipment industry as the major industry of the region. Private consumption is moderately picking up due to the steady performance in convenience stores, drug stores and other businesses.
[Hokuriku] Improving although some businesses show weakness (no change)
Production shows a decrease in products for smartphones in the electronic parts and devices industry, while remaining at a high level mainly in the chemicals and production machinery industries. Private consumption is picking up due to the steady performance mainly in food and beverages in supermarkets, drug stores and other businesses.
[Kinki] Improving moderately (upward)
Production holds firm due to the steady domestic demand, while being affected by the impact of overseas economies. Private consumption is moderately improving as the consumption by overseas tourists in Japan remains brisk and steady sales of luxury goods and value-added products are seen in the domestic demand.
[Chugoku] Picking up moderately although some businesses show weakness (upward)Production shows weakness in some businesses in the electronic parts and devices and other industries, while showing signs of moderate picking-up in the automobile industry due to the full-fledged start of production of newly launched vehicles and other factors. Private consumption shows signs of moderate picking-up backed by brisk performance in luxury goods as well as in food and beverages and other products brought about by the demand related to cherry blossom viewing and events commemorating the shift to the Reiwa era.
[Shikoku] Showing some pause in signs of picking up (no change)Production remains sluggish as seen in weakness in some businesses in the electrical machinery and other industries. Private consumption shows signs of picking up backed by the influence in sales of seasonal products due to continued high temperatures.
[Kyushu] Remaining flat (no change)Production tends to be flat as seen in steady performance and other elements in the automobile industry. Private consumption remains flat as a whole, regardless of the shift to the Reiwa era and the effects brought about by the Golden Week holidays.
[Okinawa] Continuing to improve (no change)Against the backdrop of an increase in the number of tourists and the steadiness of private consumption, production continues to improve. Business investment is also picking up.
Note: The term “upward” means higher performance from the previous research results, the term “no change” means performance remaining flat, and the term “downward” means lower performance from the previous quarter.
Division in Charge
Regional Economic and Industrial Research Office, Regional Economic and Industrial Policy Group