Tokyo, Nov. 9 (Jiji Press)–Japan’s composite index of coincident economic indicators rose 0.7 point from the previous month in September, up for the first time in two months, the Cabinet Office said in a preliminary report on Monday. The coincident index, which reflects current economic conditions, rose to 119.5 against the 2020 base of 100, supported by a recovery in the automobile sector, which had faced production disruptions due to a powerful earthquake that struck the southwestern prefecture of Kumamoto in July. Based on the latest reading, the government agency maintained its basic assessment, saying that the index is “improving.” The September result also reflected strong production of semiconductor manufacturing equipment amid growing global investment in artificial intelligence and semiconductors. The economic expansion phase that began in June 2020 is believed to be continuing. The leading index, a yardstick for the economy’s performance several months ahead, fell 1.6 points to 116.4, marking the first decline in 17 months. The decrease was attributed to delays in excavator shipments and increased production and inventories of air conditioners ahead of the introduction of stricter energy-efficiency standards in April 2027, as well as weaker consumer sentiment. END [Copyright The Jiji Press, Ltd.]
