Japan Coincident Economic Index Down 0.7 Point in Aug.

Tokyo, Oct. 7 (Jiji Press)–Japan’s composite index of coincident economic indicators fell 0.7 point in August from the previous month, down for two months in a row, the Cabinet Office said in a preliminary report Tuesday. The coincident index, which reflects current economic conditions, stood at 113.4 against the 2020 base of 100, the government agency said. The Cabinet Office kept its assessment on the index unchanged, saying it is “halting to fall.” The deterioration reflected sluggish production of personal computers and other items and a decline in shipments of investment goods. Retail and wholesale sales fell, following increases a year before, when demand for stockpiled food surged after an emergency alert for a Nankai Trough megaquake was issued for the first time. Japan’s exports to the United States and other Asian countries also dropped, resulting in six of the eight component indicators available in the preliminary report making negative contributions to the coincident index. Meanwhile, shipments of consumer durables were boosted by robust demand for automobiles, contributing positively to the index. Regarding U.S. President Donald Trump’s high tariff policy, a Cabinet Office official said that it is necessary to closely monitor the impact of U.S. tariffs on Japanese automobiles next month and beyond. The leading index, a yardstick for the economy’s performance months ahead, rose 1.3 points to 107.4, up for the fourth consecutive month. END [Copyright The Jiji Press, Ltd.]