Japan’s Coincident Economic Index Up 0.4 Point in May

Tokyo, July 7 (Jiji Press)–Japan’s composite index of coincident economic indicators rose 0.4 point from the previous month in May, marking the third consecutive month of growth, according to preliminary data released by the Cabinet Office on Tuesday. The coincident index, which reflects current economic conditions, reached 118.5 against the 2020 base of 100, as chemical and petroleum production recovered amid the easing impact of tensions in the Middle East. Automobile-related shipments also increased. The Cabinet Office maintained its basic assessment, saying that the index is showing improvement. This view had been expressed in the revised report for April, representing an upgrade from the preliminary report for that month. In May, the coincident index reflected a recovery in the production of oil-related products as manufacturers diversified their procurement of raw materials away from the Middle East. The completion of scheduled repairs at ethylene production facilities of major petrochemical companies also contributed to the increase, as did higher retail sales, which were partly driven by rising food and beverage prices. Meanwhile, the leading index, a yardstick of the economy’s performance months ahead, inched up 0.7 point to 116.8, extending its improvement streak to 12 consecutive months. The leading index was pushed up by robust housing starts for both built-for-sale and rental housing, as well as rises in commodity price indexes for chemicals and wood-related products against a backdrop of rising naphtha prices. END [Copyright The Jiji Press, Ltd.]