Japan Coincident Economic Index Inches Up in March

Tokyo, May 12 (Jiji Press)–Japan’s composite index of coincident economic indicators rose 0.3 point from the previous month in March, up for the first time in two months, the Cabinet Office said in a preliminary report on Tuesday. The coincident index, which reflects current economic conditions, stood at 116.5 against the 2020 base of 100. The index improved after the Lunar New Year holiday period in February, when corporate activity in China and other economies slowed down. Based on the latest reading, the government agency upgraded its basic assessment of the index for the first time in a year and 10 months, saying that the index is “signaling a possible turning point” in an upward direction. Given the index’s slight improvement, however, a Cabinet Office official said that it is necessary to closely watch the impact of the turmoil in the Middle East before releasing a revised report on the index later this month. In March, shipments of producer goods, such as boiler parts, and wholesale sales of electronics parts to China were strong, while weak production of oil-related products, such as gasoline and naphtha, dragged down the index. The preliminary report also showed that the leading index, a barometer of the economy’s performance months ahead, rose 1.3 points to 114.5, up for the 10th consecutive month. END [Copyright The Jiji Press, Ltd.]