At the Bank of Japan's branch managers' meeting held on the 9th, many reports indicated that while exports and production are being weighed down by heightened tensions in the Middle East, the likelihood of a sharp decline has diminished compared to some time ago, thanks to progress in alternative procurement of raw materials and revisions to transport routes. On wages, many reports noted that with corporate profits remaining at high levels, a large number of companies, including small and medium-sized enterprises, have implemented wage increases this fiscal year on par with the high levels seen in fiscal 2025. The July regional economic report, also known as the Sakura Report, released at the same time, showed that the overall economic assessment was left unchanged from the previous report in April across all nine regions.