Coincident index back to level before ’14 tax hike

October 6, 2017

TOKYO- Japan's composite index of coincident economic indicators for August rose to a level unseen since March 2014, a month before the country's latest consumption tax hike, the Cabinet Office said Friday.

The coincident CI, which reflects current economic conditions, stood at 117.6 against 100 for the base year of 2010, up 1.9 points from the previous month, the government agency said in a preliminary report.

The index marked its first rise in two months, backed by brisk automobile manufacturing and capital spending.

The Cabinet Office said the index is improving, giving the same assessment for the 11th straight month. Of the seven component indicators for which month-on-month comparisons are available, five helped push up the index.

The improvement in the coincident index also reflected increased shipments of semiconductor-making equipment for smartphones and construction materials and equipment including cranes.

The leading index, a yardstick for the economy's performance months ahead, advanced 1.6 points to 106.8, also the first rise in two months.

In August, the current economic expansionary phase, which started in December 2012, is believed to have entered its 57th month, tying the second-longest postwar economic boom. But consumer spending growth remains slow. Jiji Press