Japan’s Economic Expansion Likely Ties Record 73 Months

Tokyo, Aug. 7 (Jiji Press)–Japan’s current economic expansion phase has likely reached 73 months, tying the postwar record set by the Izanami boom from February 2002 to February 2008. On Friday, the Cabinet Office reported that the composite index of coincident economic indicators rose 0.3 point from the previous month to 118.2 in June, against the 2020 base of 100, maintaining its basic assessment that the index is showing improvement. Whether the current expansion phase has reached the record length is expected to be officially judged around two years later. The Izanami boom was recognized in October 2011. In June, the coincident index improved on the back of an increase in exports of semiconductor manufacturing equipment. As imports and exports of electronic components grew, wholesale sales also positively contributed to the index. Meanwhile, the leading index, a barometer of the economy’s performance months ahead, stayed flat at 116.4. Although sales projections by small and midsize firms in sectors including the electric and electronic industry improved, the inventory ratio of production goods such as electronic devices rose, negatively impacting the index. The peak and trough of an economic cycle are officially determined by the head of the Cabinet Office’s Economic and Social Research Institute based on discussions by experts. END [Copyright The Jiji Press, Ltd.]