The Finance Ministry on Thursday upgraded its economic assessment for the Hokuriku and Okinawa regions while leaving its view on the remaining nine regions unchanged.

In a quarterly report, the ministry said the country's economy is "recovering at a moderate pace," adopting the same assessment for the 10th straight quarter.

The January report is based on the regional assessment of economic conditions over the past three months by local finance bureaus reported at a meeting the same day.

The ministry upgraded its view on personal consumption in Okinawa but maintained its assessment for the other regions.

A supermarket official in Hokkaido was quoted as saying that sales of crab and meat rose during the year-end and New Year's holiday period while the overall number of items purchased per customer is declining.

The ministry painted a brighter picture of production activity for the Hokuriku and Chugoku regions, while its view on Hokkaido was downgraded.

The output of transport machinery remained firm, including U.S.-bound products, but steel production was weak amid subdued construction demand, the report said.

The view on employment conditions was downgraded in the Shikoku and Kyushu regions.

The ministry upgraded its assessment for tourism in Okinawa. Despite cancellations by group travelers following Chinese government notices advising against visits to Japan, a hotel industry official said there was no significant impact.

Looking ahead, the ministry said the Japanese economy is expected to continue "recovering at a moderate pace" as employment and income conditions improve. It also said, however, close attention should be paid to price trends, U.S. trade policy and financial and capital market developments.

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