Tokyo, Oct. 7 (Jiji Press)–Japan’s composite index of coincident economic indicators fell 1.9 points from the previous month in August, marking its first decline in six months, the Cabinet Office said Wednesday. The coincident index, which reflects current economic conditions, stood at 118.7 against the 2020 base year of 100, the government agency said. The Cabinet Office maintained its overall assessment unchanged, saying that the index is “improving,” suggesting that the economic expansion is likely to have continued since it began in June 2020. Automobile production and shipments were sluggish as plant operations were suspended and parts supplies were disrupted by factors including a massive earthquake that struck Kumamoto Prefecture, southwestern Japan, in late July. Production of petroleum and coal products was also weak due to scheduled equipment maintenance. The index of leading economic indicators, a yardstick for the economy’s performance months ahead, rose 0.4 point to 118.0. The sales forecast DI for small and midsize companies contributed to the increase in the overall leading index. The current expansion phase is believed to have reached 74 months in July, surpassing the postwar record of 73 months from February 2002 to February 2008, known as the “Izanami” boom. The expansion’s official duration will be determined retrospectively after deliberations by a panel of experts under the government agency in charge of determining the economy’s cyclical peaks and troughs. END [Copyright The Jiji Press, Ltd.]
