The Bank of Japan held a meeting of regional branch managers on October 7 and received a report that consumption among younger generations is increasing, partly due to their significant wage hikes.

At the quarterly meeting, while many companies voiced the need to continue raising wages in the next fiscal year and beyond, there were also strong voices, especially from small and medium-sized companies, complaining about the severity of their earnings.

Economic assessments were raised in the Tokai and Hokuriku regions, central Japan.

In Tokai, the impact of automakers' certification fraud problems has eased and in Hokuriku, reconstruction from the Noto Peninsula earthquake is progressing.

However, the meeting noted that the impact of September’s torrential rainfall in Okunoto on the Hokuriku economy needs to be closely monitored.