The Bank of Japan has downgraded its economic assessment for most parts of the country, citing disruptions to auto production among other factors. The change comes in the central bank's latest quarterly report on Japan's nine regional economies.

BOJ Governor Ueda Kazuo and 32 BOJ regional branch managers met on Thursday to discuss the contents. The report contains downgraded assessments for all but two of the country's regions, Hokkaido and Shikoku.

It blames a suspension in auto output due to a safety data scandal involving Daihatsu Motor and other firms. The suspension had a ripple effect through the auto industry.

The report also cites slow sales of clothing and home appliances, a result of the warm winter.

Some branch managers noted that firms in their regions are increasingly raising wages for their workers. But others drew attention to problems caused by labor shortages.

The central bank ended its negative-interest rate policy last month, citing a simultaneous rise in prices and wages.

Analysts are watching to see if the trend will take hold in regional and rural parts of the country.