Coincident economic index drops in July

September 7, 2017

TOKYO- Japan's composite index of coincident economic indicators declined for the first time in two months in July, the Cabinet Office said Thursday.

The coincident CI, which reflects current economic conditions, fell 1.2 points from the previous month to 115.6 against 100 for the base year of 2010, the government agency said in a preliminary report.

The decline came chiefly because automobile sales dropped in July following their growth in the preceding month.

But the Cabinet Office said that the index is "improving," using the assessment for the 10th straight month.

All seven component indicators available for comparison with the preceding month deteriorated in July.

In addition to weak automobile sales, production of Asia-bound machines to make semiconductors for smartphones was sluggish.

The leading CI, a yardstick for the economy's performance months ahead, fell 0.7 point to 105.0, down for the first time in three months, mainly reflecting a rise in an inventory ratio for steel. Jiji Press