General Summary of Regional Economic and Industrial Research Results
(from October to December 2016) (1/2)
Material 2
○General economic conditions (Improving moderately)
・Production in the electronic parts and devices industry is steady, centered on products for
automobiles and smartphones. Clothing sales remain sluggish, but private consumption is
steady for food and beverages partly due to high prices.
○Production
・Automobile-related industries: Production of products, mainly for export to North America,
etc., is steady in Hokkaido, Tohoku, Kanto, Tokai, Chugoku and Kyushu, while
production for domestic demand increases in Kanto, Kinki and Kyushu thanks to the
effects of newly launched vehicles.
・Electronic parts and devices industry: Production is steady in Tohoku, Tokai, Hokuriku, Kinki,
Chugoku and Kyushu, centered on products for automobiles and smartphones.
・General-purpose, production, and business oriented machinery industries: Production is
steady in Tohoku, Kanto, Hokuriku, Kinki, Chugoku and Kyushu, centered on
manufacturing equipment for semiconductors to be exported.
○Business investment
・Manufacturing industries: In addition to business investment for the maintenance and renewal
of equipment, there is some movement in investment for production capacity
enhancement and streamlining. Many companies have made investment according to
their original plans.
・Non-manufacturing industries: Trends of opening new stores and renovating existing stores
are observed in the retail industry.
1
General Summary of Regional Economic and Industrial Research Results
(from October to December 2016) (2/2)
○Employment situation
・Manufacturing industries: Companies face a labor shortage in engineers, etc. and have been
actively recruiting temporary staff, etc.
・Non-manufacturing industries: A labor shortage is seen in the retail, services, and construction
industries, and many companies have difficulty in attracting job seekers.
○Private consumption
・Department stores and supermarkets: Clothing consumption has continued to be weak. Sales
are favorable for food and beverages at supermarkets partly due to high prices of
perishables.
・Convenience stores: In addition to the effects of newly opened stores, goods displayed around
cash registers are selling well.
・Automobile sales: Sales of light vehicles remain sluggish, while ordinary vehicles sell well
thanks to the effects of newly launched vehicles.
・ Tourism: Demand of foreign tourists has been shifting from luxury goods to general
consumables and private consumption is sluggish.
2
Comments from companies (October-December 2016)
Major comments
Production
・Production of dairy products has decreased as milking was hindered due to typhoon damage. (Food / Hokkaido)
・Production has maintained a high volume level, centered on products for smartphones to be exported to China. (Electronic parts and devices,
and electronic circuits / Hokuriku)
・In spite of expected increases in demand for products for automobiles or for construction, income has been decreasing recently due to a
significant increase in prices of coking coal. (Iron and steel / Kanto)
・Demand from foreign smartphone manufacturers and domestic and foreign manufacturers of IoT-related products has been favorable.
(General-purpose, production, and business oriented machinery / Kinki)
Consumption
・Consumption by key customers has remained unchanged but consumer confidence of general consumers is declining, thus polarization is
occurring. (Department store / Tohoku)
・Thanks to the effects of newly launched vehicles, consumption is steady. Hybrid vehicles and highly functional vehicles sell well, and sales of
light vehicles, which had been sluggish, show signs of picking up. (Automobile retailer / Hokuriku)
・Inbound consumption remains favorable for cosmetics but sales of luxury goods have decreased. As a result, the increase in the total sales of
duty-free items has slowed. (Department store / Kanto)
・Heating appliances are selling well, but the number of customers as a whole has decreased and per-customer spending is also decreasing.
(Home appliances retailer / Kyushu)
Employment
・In order to secure part-timers, we raised wages and shortened working hours. (Beverage, tobacco and feedstuff / Hokkaido)
・In order to secure and retain workers and raise their motivation, we increased the bonus rates compared to the previous year. (Plastic /
Chugoku)
・We cannot recruit new graduates from industrial high schools due to competition with large companies. (General-purpose, production, and
business oriented machinery / Shikoku)
Business
investment
・As measures for addressing a constant labor shortage, we have made IT system investment for enhancing business efficiency. (Real estate /
Chugoku)
・We have made business investment for enhancing productivity of domestic bases, as well as IoT-related investment and prior art-related
investment. (Transport equipment / Tokai)
・We will repair facilities damaged by the Kumamoto Earthquake and will renew equipment for attracting inbound demand. (Tourism /
Kyushu)
Recent topics
・We encourage workers to leave the office at 20:00 as a means to promote work-life-balance, and overtime hours are decreasing. (Transport /
Okinawa)
・We mainly employed male workers for sales and conducting services, but we came to feel the necessity of reflecting women's ideas and
utilizing their customer service skills. Therefore, we are trying to hire more women also from the perspective of changing working styles of all
workers. (Life-related services / Kinki)
・We are closely watching the policies of the new US President. We are wondering how we should set an assumed exchange rate for the
coming fiscal year. (Transport equipment / Tokai)
3
Hokkaido
General
economic
conditions
Sectorspecific
conditions
(Based on
comments
from
companies
and statistical
indicators)
Related
indicators
< Picking up moderately >
Production as a whole keeps alternating between periods of increase and decrease due to damage caused by typhoons, etc., although
production of automobile parts has been favorable. Private consumption is picking up thanks to steadiness in consumption of food and
beverages. Tourism continues to be brisk backed by the effects of the opening of the Hokkaido Shinkansen.
○ Production keeps alternating between periods of increase and decrease.
 Production of automobile parts mainly for export to North America is favorable and production of information equipment has increased due to
commencement of the production of new models. On the other hand, production of generator components has decreased due to a decline in both
domestic and foreign demand.
 After being hit by typhoons, production of iron frames for reconstruction work increased, while production of dairy products has decreased as
milking was hindered due to power outages.
○Business investment is decreasing.
 Business investment is mainly made for maintenance and repair in this fiscal year both in manufacturing and non-manufacturing industries,
showing an overall decrease from the high level of business investment maintained in the previous fiscal year thanks to large-scale investment.
 In manufacturing industries, the transport equipment and non-ferrous metal industries have made investment for constructing new automobilerelated plants or enhancing production facilities.
 In non-manufacturing industries, the tourism industry has made investment for newly building or remodeling hotels, and the retail industry has
invested in opening large stores or newly constructing distribution centers.
○The employment situation is improving.
 The effective ratio of job offers has been improving over the long term. In particular, the effective ratio of job offers is high in the Niseko area,
which is popular among foreign tourists.
 In the meantime, mismatches between the employers' needs and those of job seekers in some types of business have caused labor shortages in
sales clerks and other field staff in the construction, tourism, manufacturing, and retail industries.
 Therefore, companies are striving to secure personnel by hiring mid-career workers and utilizing temporary staff, in addition to women and the
elderly, and also by converting part-timers to regular employees, raising wages, and shortening working hours.
○Private consumption is picking up.
 Department stores saw sales decreases due to sluggishness in sales of duty-free items of luxury brands and closure of some stores, in spite of brisk
bargain sales celebrating the victories of the Hokkaido Nippon-Ham Fighters (baseball team) and Hokkaido Consadole (football team).
Supermarkets are continuously enjoying favorable food and beverage sales.
 Seasonal items such as hot beverages sold well at convenience stores, and drugstores enjoyed increased duty-free sales of cosmetics.
 New hybrid vehicles continue to be selling favorably.
 The number of Japanese and foreign tourists maintained a high level thanks to the opening of the Hokkaido Shinkansen, although the influence of
typhoons remains.
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
96.0 (92.9)
Department stores and supermarkets
Sales (Y/Y change)
0.4% (-1.2%)
Convenience stores
Sales (Y/Y change)
1.1% (2.1%)
Effective ratio of job offers
* Seasonally adjusted
1.02 (1.05)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators that remain
unchanged are in white.
4
Tohoku
< Picking up moderately with some weakness >
General
economic
conditions
Private consumption as a whole remained almost unchanged with some favorable signs observed in new vehicle sales. Production is showing
a moderate recovery from the range of constant flat production levels thanks to favorable demand for manufacturing equipment for
semiconductors and products for automobiles and smartphones.
○Production shows signs of picking up moderately.
 The electronic parts and devices industry shows steady production, centered on products for automobiles and smartphones.
 Production in the general-purpose, production, and business oriented machinery industries has been increasing with favorable demand for
semiconductor-related products.
 The transport equipment industry has seen a production increase due to commencing the production of new automobile parts.
 The information and communication equipment industry has been continuously showing weakness due to sluggishness in the domestic market, etc.
○Business investment is picking up moderately.
Sector-specific
conditions
(Based
comments
companies
statistical
indicators)
on
from
and
 There are many companies that plan to increase the amount of business investment from the previous fiscal year, but most of them maintain their plans
made at the time of the survey for the previous quarter.
 In manufacturing industries, increases are observed in business investment for the production of new products in the transport equipment-related
industries and for the construction of new plants in the food industry. In non-manufacturing industries, a relatively large number of companies also plan
to increase business investment, as seen in the retail industry, etc. where new stores are continuously opened.
 The amount of business investment is planned to be increased from the previous fiscal year mainly in manufacturing industries.
○The employment situation is improving.
 The effective ratio of job offers and the ratio of new job offers to applicants both remain at a high level, partly supported by reconstruction demand, and
the employment situation has continued to improve.
 A noticeable mismatch still remains for some types of jobs in the coastal areas in prefectures damaged by the earthquake.
 Regarding the perceptions of excess and insufficiency of workers, companies responding that they suffer insufficiency decreased slightly from the
previous survey (July- September) but remain to be large in number.
 Some worry about an increasing difficulty in securing young employees into the future.
○Private consumption is at a standstill.
 Department stores and supermarkets have continued to suffer from sluggish sales of clothing and jewelries and other luxury goods, although sales of
cosmetics have been favorable and those of food and beverages for year-end gifts picked up.
 Convenience stores enjoy steady sales thanks to newly opened stores. Sales of new vehicles also show signs of picking up thanks to newly launched
ordinary and light vehicles.
 Some point out that consumers' budget-minded attitudes will continue while they also purchase relatively expensive goods if they find them to be of
high quality, etc.
Related
indicators
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
99.5 (98.1)
Department stores and supermarkets
Sales (Y/Y change)
-0.2% (-2.1%)
Convenience stores
Sales (Y/Y change)
1.7% (2.5%)
Effective ratio of job offers
* Seasonally adjusted
1.34 (1.30)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators
that remain unchanged are in white.
5
Kanto
General
economic
conditions
Sectorspecific
conditions
(Based on
comments from
companies and
statistical
indicators)
Related
indicators
< Improving moderately with some weakness >
Private consumption is at a standstill with prevailing consumers' budget-minded attitudes. Production as a whole keeps alternating
between periods of increase and decrease despite steady production in the transport equipment industry. The employment situation
continues to improve.
○Production keeps alternating between periods of increase and decrease.
 The transport equipment industry shows steady production thanks to favorable sales of ordinary and small passenger vehicles due to the launch of
new models and brisk demand for those for export, although domestic sales of light vehicles are sluggish.
 The general machinery and electrical machinery industries enjoy favorable demand for products for liquid crystal panels and automobiles, but
some companies face decreases in orders received.
 The iron and steel industry is expected to enjoy demand increases for either automobiles or construction in relation to the Tokyo Olympic Games,
but some complain about a deterioration in earnings due to higher materials prices.
○Business investment is expected to exceed the level of the previous fiscal year.
 In manufacturing industries, many large companies and SMEs intend to make business investment as they had planned at the beginning of this
fiscal year. Those having changed their initial plans positively are notable in SMEs, and some are planning to accelerate their plans or initiatives
to enhance capacity.
 In non-manufacturing industries, many companies intend to make business investment for renovating stores, etc. as initially planned.
○The employment situation is improving.
 Manufacturing industries face a labor shortage and companies have been actively recruiting engineers and temporary staff. On the other hand,
mainly SMEs have difficulty in securing sufficient personnel.
 In non-manufacturing industries, there is a strong sense of a shortage of engineers and salespersons at retail stores, and many foresee this to
continue.
○Private consumption is picking up moderately but has come to a standstill recently.
 Department stores are seeing sluggish sales in the premium market segment, i.e., middle class customers, partly due to consumers' budget-minded
attitudes. Per-customer spending and purchases by foreign tourists have declined.
 Supermarkets enjoy sales increases due to high prices of vegetables but the number of items purchased has decreased, which suggests pullbacks
in consumer spending.
 Convenience stores are continuously enjoying good sales, centered on goods displayed around cash registers.
 Sales of light vehicles remain sluggish, but the number of registered vehicles is increasing backed by the effects of newly launched models.
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
94.1 (93.0)
Department stores and supermarkets
Sales (Y/Y change)
-0.4% (-3.8%)
Convenience stores
Sales (Y/Y change)
2.8% (2.0%)
Effective ratio of job offers
* Seasonally adjusted
1.45 (1.42)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators
that remain unchanged are in white.
6
Chubu (Tokai)
General
economic
conditions
Sector-specific
conditions
(Based on
comments from
companies and
statistical
indicators)
Related
indicators
< Improving moderately with some weakness >
There are signs of production increases in the transport equipment industry, and also signs of a business pick up in the electronic parts and
devices industry. Private consumption has increased partly due to price increases in perishable food. Clothing sales continue to be sluggish.
○Production is picking up.
 Production in the automobile-related industry, the major industry of the region, shows signs of increase thanks to steady exports and a moderate
recovery of domestic demand.
 Production in the electronic parts and devices industry is moderately picking up thanks to favorable demand for products for new models of
sophisticated smartphones and due to export to a Chinese local smartphone manufacturer.
 In the metal-cutting machinery industry, production is picking up due to steadiness in production of products for domestic demand, mainly those
relating to subsidies.
○Business investment is increasing, but the growth is slowing down.
 Manufacturing industries continue to show a positive attitude toward investment for streamlining and efficiency enhancement, as well as for
maintenance and renewal of equipment. Additionally, some automobile parts companies are making investment for producing new products,
while metal-cutting machinery companies are making investment for production capacity enhancement.
 Large companies are continuing active investment, while SMEs exhibit high expectations for the establishment of additional support systems
(such as subsidies and tax incentives).
 In non-manufacturing industries, retailers such as department stores, supermarkets and convenience stores are making investment for renovation.
○The employment situation is improving steadily.
 A sense of labor shortage has slightly eased for large manufacturing companies, while there remains a strong sense of labor shortage mainly
among SMEs.
 In non-manufacturing industries, supermarkets and convenience stores continue to face a shortage of non-regular workers and are having
difficulty in attracting job seekers.
○Private consumption is at a standstill.
 Sales of food and beverages increased at supermarkets partly due to high prices of perishable food.
 Convenience stores continue to have good sales of goods displayed around cash registers.
 Department stores continue to see sluggish sales of clothing. Inbound demand has shifted from luxury goods to general consumables and the
overall sales are sluggish.
 Regarding household appliances, air conditioners and white goods are selling but sales of information appliances remain sluggish.
 Sales of ordinary vehicles are steady while sales of light vehicles continue to be sluggish.
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
111.5 (110.1)
Department stores and supermarkets
Sales (Y/Y change)
1.5% (-2.5%)
Convenience stores
Sales (Y/Y change)
4.3% (2.1%)
Effective ratio of job offers
* Seasonally adjusted
1.64 (1.58)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators
that remain unchanged are in white.
7
Chubu (Hokuriku)
General
economic
conditions
< Improving moderately >
Production is moderately increasing mainly in the electronic parts and devices industry. Spending and private consumption is moderately picking up
with consumption of vehicles and food on special days being steady.
○Production shows a moderate upward trend.
 The chemicals industry maintains brisk production of generic drugs and significant production on commission at a time when a shift to generic drugs from
new types is being observed.
 The electronic parts and devices industry shows favorable production of products for automobiles and also an increase in production of products for
smartphones to be exported mainly to China.
 In the general-purpose, production, and business oriented machinery industries, full-scale production of manufacturing equipment for semiconductors is
continuing in response to hot demand from overseas.
 The metal products industry has steadily increased production of housing materials in accordance with the increase in housing starts, but a preference for
houses for rent (apartment buildings) as a means for reducing inheritance tax has resulted in a slowdown in the growth of the total floorage, leading to an
only slight production increase as a whole.
 In the textile industry, production has been sluggish for products mainly for domestic demand in spite of steady production of clothing for export mainly
to the Middle East.
Sectorspecific
conditions
(Based on
comments from
companies and
statistical
indicators)
○Business investment remains at a high level.
 In manufacturing industries, reactionary decreases after active investment in the previous year are partially observed, but companies generally continue
investment for R&D for new products and productivity enhancement. Overseas investment in high growth markets is also being made actively.
 In non-manufacturing industries, large-scale investment projects ahead of the opening of the Hokuriku Shinkansen have ended, but demand for
remodeling of stores and moves to open new stores outside conventional business areas are increasing.
○The employment situation is improving.
 In manufacturing industries, companies that are increasing production have strived to secure required personnel by increasing temporary staff and
changing personnel positions internally.
 In non-manufacturing industries, companies have difficulty in securing part-timers and are endeavoring to secure staff through such means as reemploying retired workers.
○Private consumption shows signs of picking up moderately.
 At department stores, the number of customers, mainly seniors, has decreased and sales of seasonal goods such as clothing are sluggish. However,
consumption by wealthy people shows signs of recovery.
 Supermarkets enjoy steady sales of food, the core of their business, partly thanks to high priced items, although clothing, bedclothes, toys, etc. do not sell
well.
 Consumers' preference for goods is becoming stronger, but spending on special days is steady.
 Automobile sales are brisk backed by the launch of new models, with signs of improvement observed in recently sluggish sales of light vehicles.
 An increase in the number of tourists thanks to the opening of the Hokuriku Shinkansen seems to have slowed, but foreign tourists increased as a result of
an increase of cruise ships making stops.
Related
indicators
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
130.1 (120.8)
Department stores and supermarkets
Sales (Y/Y change)
4.1% (-1.4%)
Convenience stores
Sales (Y/Y change)
4.3% (3.2%)
Effective ratio of job offers
* Seasonally adjusted
1.71 (1.64)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators that remain
unchanged are in white.
8
Kinki
General
economic
conditions
< Improving moderately >
Production of the electronic parts and devices, and electrical machinery industries has remained at a high level, and that of the production
machinery industry shows signs of picking up. While the employment situation is improving, private consumption is also improving
moderately.
○Production shows signs of picking up.
 The electronic parts and devices industry maintains a high production level as smartphones are becoming increasingly highly functional.
 Production in the electrical machinery industry remains steady for batteries for automobiles, etc.
 The general-purpose, production, and business oriented machinery industries see production increases in manufacturing equipment for semiconductors
and flat-panel displays for export.
 The transport equipment industry shows production increases in automobile parts partly due to the effect of the launch of new models for the domestic
market. The chemicals industry maintains steady production of cosmetics.
○Business investment is picking up.
Sectorspecific
conditions
(Based on
comments
from
companies
and statistical
indicators)
 In manufacturing industries, business investment is being made mainly for maintenance and renewal of equipment and for production capacity
enhancement. Many companies are making investments as they planned initially. Overseas investment for achieving local production for local
consumption is also being continued.
 In non-manufacturing industries, investment is being made for the development of warehouses and other distribution facilities and for retailers' opening
of new stores with the aim of expanding domestic demand.
○The employment situation is improving.
 A labor shortage remains. Companies in the retail and services industries have difficulties in securing part-timers despite their efforts such as raising
hourly wages. Some mention intensifying competition, mainly in manufacturing industries, for securing qualified staff and engineers.
 Companies are making efforts for reforming working styles, trying to eliminate long working hours by reducing overtime work and making efforts to
positively utilize women and foreign nationals.
○Private consumption shows signs of moderate improvement.
 Department stores see weakness in consumption by customers in the volume zone segment although luxury goods are selling partly thanks to high stock
prices. Supermarkets generally enjoy steady sales centered on food and beverages, with brisk sales of prepared food, etc. and due to high prices of
agricultural products. Convenience stores continuously enjoy good sales of goods displayed around cash registers.
 Sales of home appliances are generally weak, although seasonal home appliances sell well. Automobile sales exceed the level of the previous year with
signs of recovery in sales of light vehicles and favorable sales of ordinary and small passenger vehicles thanks to the launch of new models.
 Demand for foreign tours continues to be weak due to worries concerning political instability, etc. Regarding consumption by foreign tourists, brisk
cosmetics sales are often mentioned.
Related
indicators
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
106.1 (101.8)
Department stores and supermarkets
Sales (Y/Y change)
-1.0% (-4.0%)
Convenience stores
Sales (Y/Y change)
5.3% (3.9%)
Effective ratio of job offers
* Seasonally adjusted
1.34 (1.30)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators
that remain unchanged are in white.
9
Chugoku
General
economic
conditions
< Picking up >
Increases are observed in production of chemicals after periodic facility repair and in production of automobiles backed by favorable demand
for export. Accordingly, overall production is on the rise. Private consumption is picking up with steadiness in sales of food and beverages,
home appliances and passenger vehicles.
○Production shows signs of picking up moderately.
 Production of the chemicals industry has increased as planned, without periodic facility repair, which was conducted in the previous quarter, or any
significant facility failures.
 Production of automobiles has increased thanks to minor model changes and favorable exports, as well as resumption of production of light vehicles.
 The electronic parts and devices industry is increasing production backed by increased orders for products for smartphones.
 The iron and steel industry sees a slight increase in crude steel production from the previous quarter, and the inventory adjustment of thin plate steel has
been progressing. As a result, production in the iron and steel industry remained unchanged.
 Production remained unchanged in the general-purpose, production, and business oriented machinery industries which are steadily receiving orders
from overseas customers but are seeing a downward trend in the volume of orders compared with the past.
○Business investment is picking up.
Sectorspecific
conditions
(Based on
comments from
companies and
statistical
indicators)
 In manufacturing industries, companies are positive about investment for maintenance and renewal of existing equipment in response to the aging of
equipment and for the purpose of enhancing productivity, in addition to forward-looking investment in response to the increase in orders received and
launch of new products. On the other hand, some are postponing renovation of equipment due to declining profits or uncertainties over the future.
 In non-manufacturing industries, investment is being continued for opening new stores, expanding and renovating existing stores, and managing and
renewing existing equipment.
○The employment situation is improving steadily.
 Manufacturing industries are complaining about a shortage of engineers, and various types of businesses in non-manufacturing industries face a labor
shortage, irrespective of the categories of full-time workers or part-timers. Some say that they are increasing overtime work or converting contract
employees and temporary staff to regular employees in order to compensate for the lack of staff.
○Private consumption is picking up.
 Department stores enjoy brisk sales of food and beverages, but clothing and luxury goods do not sell well. Consumers' budget-minded attitudes are
becoming stronger.
 Supermarkets saw sales increase in vegetables due to high prices and functional underwear sold well.
 Home centers enjoy good sales of heaters and health appliances, and large home appliance retailers enjoy good sales of white goods, TVs and air
conditioners.
 Drugstores point out that they were able to successfully increase consumer spending appetites through the introduction of loyalty point systems.
 In October and November, effects of bargain sales celebrating the victory of the local baseball team, Hiroshima Toyo Carp, were observed.
 Automobile sales have been exceeding the levels of the previous year since July.
Related
indicators
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
97.3 (96.4)
Department stores and supermarkets
Sales (Y/Y change)
0.0% (-2.3%)
Convenience stores
Sales (Y/Y change)
4.0% (5.2%)
Effective ratio of job offers
* Seasonally adjusted
1.62 (1.57)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators that remain
unchanged are in white.
10
Shikoku
General
economic
conditions
Sectorspecific
conditions
(Based on
comments
from
companies
and statistical
indicators)
Related
indicators
< Picking up moderately with some weakness >
Production of sanitary paper, etc. maintains a high level although some weakness is observed for the overall production due to
the slowdown in demand for products to be exported to China. Regarding private consumption, supermarkets enjoy steady sales
of fresh vegetables backed by high prices and automobile sales are partially picking up mainly in sales of ordinary vehicles.
○Production remains almost unchanged.
 The pulp, paper, and paper-processed products industries generally maintain a high level of production, enjoying growing demand for sanitary
paper for export.
 Production in the food industry shows signs of picking up with favorable demand for seasonings for professional use, etc.
 Production remains almost unchanged for the textile, ceramic, stone, and clay products, iron and steel, non-ferrous metal, and general-purpose
and production machinery industries, etc.
 Production in the chemicals, petroleum and coal products, and transport equipment (shipbuilding) industries partly shows weakness due to the
influence of the slowdown in demand for products to be exported to China.
○Business investment shows signs of picking up moderately.
 Investment plans are centered on maintenance and renewal of equipment.
 The food, pulp, paper, and paper-processed products, and plastic products industries plan to make investment in response to production increases
or newly received orders. At the same time the retail industry has positive investment plans for opening new stores, etc.
 On the other hand, some businesses show restrained responses such as postponing non-urgent business investment.
○The employment situation is improving.
 The majority of companies consider that they have an appropriate number of employees, but the food, pulp, paper, and paper-processed products,
plastic products, retail, home sales, and construction industries have a strong sense of labor shortage and are increasing employees.
 On the other hand, mainly SMEs have difficulties in securing required types of personnel, and some companies in the retail and construction
industries are worried about the possible influence of a labor shortage on their business.
○Private consumption remains weak but shows signs of picking up.
 At department stores, clothing, their core sales items, did not sell well due to higher temperature, and luxury good sales were also sluggish.
Supermarkets saw steady sales of food and beverages partly thanks to high prices.
 Convenience stores also saw steady sales mainly in goods displayed around cash registers, prepared food, and frozen food, partly supported by
the effects of newly opened stores. Regarding sales of home appliances, there were signs of increasing sales of 4K TVs and high priced white
goods.
 Automobile sales also show signs of picking up mainly in new small and ordinary passenger vehicles, although the recovery of light vehicle sales
is slow.
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
98.6 (100.9)
Department stores and
supermarkets
Sales (Y/Y change)
-1.5% (-1.7%)
Convenience stores
Sales (Y/Y change)
4.9% (5.3%)
Effective ratio of job offers
* Seasonally adjusted
1.42 (1.40)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators that remain
unchanged are in white.
11
Kyushu
General
economic
conditions
< Picking up >
Production has increased for automobiles and semiconductors, which are the major industries of the region, thanks to favorable demand for
products for export. Private consumption is also picking up with winter goods selling well due to decline of temperature.
○Production is picking up.
 The transport equipment industry is increasing production backed by favorable demand for new vehicles, in addition to continued favorable demand for
goods for export.
 The electronic parts and devices industry is increasing production with continued favorable demand for goods for smartphones. Some companies
continue full-scale operation in order to make up for delays after the earthquake in Kumamoto.
 The general-purpose, production, and business-oriented machinery industries showed weakness in production of manufacturing equipment for
semiconductors for domestic use, but have maintained steady production of goods for export.
 In the meantime, the iron and steel industry face a deterioration in earnings due to declining domestic and overseas demand and a significant increase in
prices of coking coal.
Sectorspecific
conditions
(Based on
comments
from
companies
and statistical
indicators)
○Business investment shows a pause in the upward trend.
 In manufacturing industries, the electrical machinery industry is making investment for developing new products, while the electronic parts and devices,
general purpose and production machinery, non-ferrous metal industries, etc. are making investment for production increases. On the other hand, some
companies have postponed business investment due to the earthquake in Kumamoto.
 In non-manufacturing industries, investment for store renewal for attracting customers or strengthening sales capacity and investment for coping with a
labor shortage are observed. However, some companies have postponed their plans to open new stores due to such reasons as an upsurge in prices of
construction materials and a serious labor shortage.
○The employment situation is improving.
 While the effective ratio of job offers has marked a record high and has maintained a high level, both manufacturing and non-manufacturing industries
face a chronic labor shortage.
 Companies are making efforts for simplifying work procedures through the introduction of machines, enhancing productivity, and converting nonregular employees to regular employees. Some companies are promoting diversification of working styles through adopting teleworking.
○Private consumption shows signs of picking up.
 Department stores and supermarkets saw declines in the number of customers in October due to bad weather or other reasons, but in November, winter
clothes started to sell as the temperature declined. Positive moves were also observed in food sales.
 Tourism in the Kyushu area saw sales exceeding the level of the previous year although per-customer spending decreased due to the "Kyushu
Reconstruction Discount" campaign activities.
 Sales of air conditioners and other heaters picked up thanks to the cold winter.
 Housing-related consumption is increasing supported by reconstruction demand after the earthquake. Convenient condominiums in city areas are also
selling well.
Related
indicators
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
110.8 (105.0)
Department stores and supermarkets
Sales (Y/Y change)
1.4% (-2.9%)
Convenience stores
Sales (Y/Y change)
7.9% (9.7%)
Effective ratio of job offers
* Seasonally adjusted
1.29 (1.26)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators that remain
unchanged are in white.
* Convenience store sales are the total for Kyushu and Okinawa.
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Okinawa
General
economic
conditions
< Continuing to improve >
Private consumption remains steady backed by increases in the number of tourists and the population in
Okinawa, as well as the improvement in the employment situation.
○Production remains at a standstill with some weakness.
 The iron and steel, and ceramics, stone and clay products industries are benefiting from brisk private and public investment. There are also
expectations for production increases toward the end of the fiscal year supported by public works.
 Production of the food industry, which is the major manufacturing industry in Okinawa, remains steady for products for tourists, although
some businesses complain about certain weaknesses.
○Business investment is picking up moderately.
Sectorspecific
conditions
(Based on
comments
from
companies
and statistical
indicators)
 Both manufacturing and non-manufacturing industries have increased the investment amount compared to their initial FY2016 investment
plans.
 Manufacturing industries are active in investment mainly for renovating aged plants and replacing equipment, while some companies in
non-manufacturing industries plan to make investment for renewing or relocating stores.
 There are also some companies that are planning to make a large-scale investment in the next fiscal year.
○The employment situation continues to improve.
 The effective ratio of job offers is steadily above 1.00, although it is lower than the national average.
 The construction, and information and communications industries are suffering a shortage of engineers, the retail industry has a shortage of
non-regular workers, and the manufacturing, transportation and services industries have shortages of both regular and non-regular workers.
 Some companies are striving to improve employment conditions (to reduce early resignations), facilitate utilization of IT and
mechanization, and reform working styles (to maintain a work-life balance, etc.).
○Private consumption continues to improve.
 Department stores and supermarkets are enjoying steady sales, exceeding the level of the same month of the previous year. As a result of
one background factor, the expansion of flight routes, the monthly total of tourists has exceeded the level a year ago for 50 months in a
row.
 Some point out that private consumption has been boosted by increases in the population in Okinawa and the number of tourists as well as
by improvements in the employment situation and income environment.
Related
indicators
Industrial Production Index
(2010 = 100)
* Seasonally adjusted
103.8 (96.7)
Department stores and
supermarkets
Sales (Y/Y change)
4.2% (3.1%)
Convenience stores
Sales (Y/Y change)
7.9% (9.7%)
Effective ratio of job offers
* Seasonally adjusted
1.02 (1.00)
* All indicators are values for November (values in parentheses are those for August). Improved indicators are in red, those that have worsened are in blue, and indicators that remain
unchanged are in white.
* Convenience store sales are the total for Kyushu and Okinawa.
13