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The Conference Board Leading Economic Index® (LEI) for Japan increased 0.2 percent in August to 104.3 (2010 = 100), following a 0.2 percent decline in July, and a 0.8 percent increase in June.
At the same time, The Conference Board Coincident Economic Index® (CEI) for Japan, a measure of current economic activity, declined 0.1 percent in August to 98.2 (2010 = 100), following a 0.2 percent decline in July, and a 0.6 percent increase in June.
The Conference Board LEI for Japan increased in August after declining in July. Its six-month growth rate has improved in recent months, but is lower compared to the prior six months. The CEI declined for the second straight month, and as a result its six-month growth rate has been flat. Taken together, the recently improved six-month growth and widespread strength in the LEI suggests that the current economic contraction should ease in the near-term.
About The Conference Board Leading Economic Index(LEI) for Japan
The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.