The Bank of Japan’s Osaka branch released its September Kansai financial and economic report on the 4th. The branch maintained its economic assessment for the Kinki region’s two urban prefectures and four other prefectures as “recovering moderately, although some weakness is observed,” keeping the previous July judgment unchanged. This marks the 26th consecutive month of an unchanged economic assessment since July 2024.
Kenji Fujita, general manager of the Osaka branch, said at a press conference the same day that expanding global demand related to artificial intelligence (AI) is underpinning exports and production. He added that the impact of AI-related demand trends on economic activity needs to be monitored carefully.
The branch analyzed that even amid ongoing turmoil in the Middle East, the risk of major disruption to production activity has declined as alternative procurement of raw materials has progressed.
By category, the branch kept its assessment of personal consumption unchanged at “increasing moderately, although some weakness is observed.” This is supported by high-end department store sales for affluent customers remaining at elevated levels. The branch also maintained its judgment that exports and production are “moving sideways.” The resilience of domestic demand, including capital investment, continues to underpin the moderate recovery of the Kansai economy.
The ripple effects of AI-related demand are spreading across a wide range of industries, including electronic components, and are functioning as a factor supporting exports and production even amid the impact of the Middle East situation. The BOJ Osaka branch plans to continue closely monitoring the impact of overseas economic trends and exchange rate fluctuations on the Kansai economy.
Add to Google Preferred Sources
Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.