Bank of Japan Saga Office Releases Regional Economic Report

On August 1, the Bank of Japan Saga Office released its latest regional economic report, offering a comprehensive assessment of Saga Prefecture's financial and economic conditions. According to the report, the overall economy of Saga remains flat, with notable sectoral variations.

Consumption Holds Steady Despite Inflation

Personal consumption continues to show strength, although inflationary pressures persist. Retail sales at department stores, supermarkets, and convenience stores remained firm. In the service sector, tourism-related consumption has been gradually increasing.

Investment Trends: Housing Weakens, Capital Investment Moderates

Housing investment has shown signs of weakening. The number of new housing starts from April to June 2025 declined compared to the same period in the previous year.

Capital investment, while still at a relatively high level, is trending downward.

Speaking of the public investment is increasing.

Industrial Production: Signs of Recovery in Key Sectors

Industrial production appears to be bottoming out. While food production remains sluggish, output in electrical appliances, electronic components, and chemicals is either recovering or showing signs of improvement.

Employment and Income: Labor Market Remains Strong

Saga's labor market continues to demonstrate resilience. The ratio of registered job offers to applicants remains high, and employee compensation—based on May estimates—has increased year-on-year. This growth is attributed to a rise in the number of regular employees and higher cash payrolls.

Inflation and Outlook

The Consumer Price Index (CPI) for June 2025 rose by 4.5% compared to the same month last year.

Comment of the Bank of Japan Saga Office

Commenting on external factors, the branch director noted that the direct impact of U.S. trade policy on Saga's economy is expected to be limited. However, he emphasized the importance of monitoring economic developments closely, including corporate responses to global uncertainties.

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Bank of Japan Saga Office / Fukuoka Branch, 佐賀県の金融経済概況(2025 夏)