The Finance Ministry on Tuesday upgraded its overall assessment of Japan's regional economies for the first time in 15 months, saying they are recovering from the fallout of the coronavirus pandemic.

Reflecting recent recoveries in consumer spending and auto output, regional economies "are gradually picking up, although they are still affected by the coronavirus, supply chain disruptions and rising raw material costs," the January report said.

The previous report in October said the economies were recovering, although at a "slowing" pace due to a global semiconductor shortage and supply chain constraints caused by Southeast Asian countries suspending parts factories amid a surge in COVID-19 cases.