Japan Coincident Economic Index Rises in April

Tokyo, June 5 (Jiji Press)–Japan’s composite index of coincident economic indicators rose 1.1 points from the previous month in April, preliminary data by the Cabinet Office showed Friday. The coincident index, which reflects current economic conditions, reached 117.9 against the 2020 base of 100 despite negative factors, such as reduced production of oil-related products amid the deteriorating situation in the Middle East. The government agency kept its basic assessment unchanged, saying that the index is “showing a possible turning point in an upward direction.” In April, production of semiconductor inspection equipment and electronic components grew due to strong market conditions. Increased shipments and sales of air conditioners, driven by a demand surge ahead of stricter government energy-saving standards set to take effect next April, also contributed to the rise in the coincident index. Meanwhile, volumes of exports to the United States, other Asian economies and the Middle East dropped significantly. The leading index, a barometer of the economy’s performance months ahead, edged up 0.5 point to 115.9, marking the 11th consecutive growth. The rise was supported by falling inventories of electronic components and plastic products, along with price hikes for chemical products linked to the Middle East situation. END [Copyright The Jiji Press, Ltd.]