Japan’s measure of future economic activity declined for the first time in three months in May, according to preliminary data released by the Cabinet Office.
- The leading index fell to 102.6 in May from 103.8 in April. It measures several composite indexes such as employment, consumer confidence, production, housing, and stock market data, and anticipates changes in economic direction.
- The coincident index fell to 92.7 from 95.3 in April, marking the lowest since February’s 89.9. It measures the current state of the economy, with an increasing trend reflecting an economic expansion, while a decreasing coincident index means the economy is contracting.
- The lagging index slipped to 99.3 from 100.8 in April. The index is generally used to confirm turning points and business cycle phases, as it lags behind the coincident CI by some six months.
Source: Cabinet Office