The Bank of Japan's Osaka Branch released its September assessment of the Kansai financial and economic situation. It kept its assessment of the economy in the Kinki region's 2 prefectures and 4 prefectures unchanged, and said demand related to AI was spreading across a broad range of industries, supporting exports and production.
The Bank of Japan's Osaka Branch released its September assessment of the Kansai financial and economic situation, maintaining its assessment that the economy in the Kinki region's 2 prefectures and 4 prefectures was "recovering moderately, although some weakness could be seen in certain areas." It noted that demand related to AI was spreading across a broad range of industries, including electronic components, supporting exports and production despite the impact of turmoil in the Middle East.
The assessment of private consumption was also maintained at "increasing moderately, although some weakness could be seen in certain areas." While department store sales to affluent customers remained at high levels, exports and production were described as staying within a broadly flat range.
The spillover effects of AI demand are expected to extend beyond manufacturing-related industries to a broad range of sectors, and were identified as a factor supporting the economy's moderate recovery trend despite the impact of external factors.
Overall, the Bank maintained its view that the Kansai economy was recovering moderately, while indicating that it would remain attentive to the impact of turmoil in the Middle East.