METI Ministry of Economy Trade and Industry of : Results of the Regional Economic and Industrial Research (October-December 2016)

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 has been revised upward for the first time in seven quarters. It is 'improving moderately.' Compared to the previous quarter, the assessment of regional economic conditions has been revised upward in the Hokuriku, Kinki and Kyushu regions and has remained the same in the Hokkaido, Tohoku, Kanto, Tokai, Chugoku, Shikoku and Okinawa 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 November 22 to December 22, 2016
• Number of target companies: 779

2. General summary

The national economic situation is improving moderately (↑)
Production in the electronic parts and devices industry, mainly for in-car products and smartphones, shows steady performance, while private consumption also shows steady performance in the food and beverages industry due to a rise in market prices of fresh food, despite persistent weakness in the clothing sector.

3. Regional summaries

[Hokkaido] Picking up moderately (→) Production shows sluggishness due to the impact of damage caused by typhoons and other factors despite being brisk in the automobile parts industry. Meanwhile, private consumption is picking up due to steady performance in the food and beverages and other industries. As for tourism, private consumption remains brisk after the inauguration of the Shinkansen service. [Tohoku] Picking up moderately although some businesses show weak performance (→) Overall production shows some pause, while private consumption shows signs of improvement in sales of new cars. Production shows steady performance for the semiconductor-manufacturing equipment industry and the in-car products and smartphones industry, signifying a movement from 'flat' production in the last period to the current 'moderate picking up' status. [Kanto] Improving moderately although some businesses show weak performance (→) Overall production shows sluggishness, while signs of improvement in private consumption appear stalled due to budget-minded attitudes. Steady performance is seen in production in the transport equipment sector. The employment situation continues to improve. [Tokai] Improving moderately although some businesses show weak performance (→) Production shows signs of increase in the transportation equipment sector and is moderately picking up in the electronic parts and devices industry. As for private consumption, sales have increased due to the impact of price increases in fresh food, while those of clothing continue to be sluggish. [Hokuriku] Improving moderately (↑) Production is on an upward moderate growth trend, mainly in the electronic parts and devices industry. As for private consumption, steady performance is seen in consumption in the automobile, food, and festive-occasion industries, which are showing moderate signs of picking up. [Kinki] Improving moderately (↑) Production shows signs of picking up, as seen in the electronic parts and devices industry and due to electrical machinery performance remaining at a high level, along with an increase in the production machinery industry. As the employment situation improves, private consumption shows signs of moderate improvement. [Chugoku] Picking up (→) Production shows signs of picking up moderately because of an increase in production in the chemical industry due to the completion of regular maintenance of facilities and in the automobile industry with brisk export performance. Private consumption shows steady performance in sales in food and beverages, home appliances, and passenger cars, showing a picking-up movement. [Shikoku] Picking up moderately although some businesses are showing weak performance (→) Production shows weakness in some businesses due to the sluggish demand in products for export to China, while performance remains at a high level in sanitary products and other sectors. Private consumption remains steady due to a rise in market prices of fresh food in the supermarket industry, while some businesses in the passenger car sector, including normal passenger cars, show signs of picking up. [Kyushu] Picking up (↑) Core automobile and semiconductor industries show an increase in production due to brisk overseas demand. Moreover, private consumption shows signs of picking up, as seen in winter commodities due to lower temperatures. [Okinawa] Continuing to improve (→) Against a backdrop of the increase in the number of tourists and the population in the service area, and the improvement of employment environments, private consumption remains steady.

Note: Compared to the economic assessment in the previous research:
Higher assessment is shown by (↑); no change by (→); and lower assessment by (↓).

Reference

Release date

January 24, 2017

Division in Charge

Regional Economic and Industrial Research Office, Regional Economic and Industrial Policy Group