Japan Coincident Economic Index Up 1.8 Points in Sept.

Tokyo, Nov. 10 (Jiji Press)–Japan’s composite index of coincident economic indicators climbed 1.8 points in September from the previous month, up for the first time in three months, the Cabinet Office said in a preliminary report Monday. The increase reflected a rise in production and shipments of semiconductor manufacturing equipment, supported by growing chip demand amid the spread of generative artificial intelligence. The coincident index, which reflects current economic conditions, stood at 114.6, against the 2020 base of 100. The Cabinet Office kept unchanged its basic assessment of the index, saying it is “halting to fall.” Six indicators, including that for industrial production, improved during the reporting month. Output and shipments of flat panel display manufacturing equipment were strong, while trade in electronic components with Southeast Asia rose. Wholesale sales were firm. The leading index, a yardstick for the economy’s performance several months ahead, rose 1.0 point to 108.0, rising for the fifth straight month. The coincident index, however, had been on a declining trend since this spring due to the impact of U.S. tariff measures. “If production remains weak, the Cabinet Office may downgrade its basic assessment to ‘worsening,'” Yoshiki Shinke, senior executive economist at Dai-Ichi Life Research Institute Inc., said, referring to the October report. END [Copyright The Jiji Press, Ltd.]