The Bank of Japan on Monday raised its economic assessment for three of the country's nine regions following strong private consumption amid the easing of COVID-19 curbs.
The upgrades reflect stronger demand for services since Japan changed its legal classification of COVID-19 to the same category as seasonal flu. A revival in inbound tourism has also given the economy a boost.
Despite higher commodity prices, the nine regional economies were "either picking up or recovering moderately," the BOJ said in its quarterly Sakura report.
The three regions the BOJ was more optimistic about were Tokai, where Toyota Motor Corp. is headquartered, Chugoku and Kyushu-Okinawa.
Its views on the remaining six areas, including Kanto-Koshinetsu, which centers on Tokyo, remain unchanged.
Japan's economy has expanded for the second straight quarter in January-March, with economists expecting modest growth in April-June.
