Japan cuts economic outlook after key indicator drops to year-long low
- The coincident index down 3.8 points compared to the previous month – government
- Government cuts index valuation for first time since August 2019
TOKYO, Nov. 8 (Reuters) – Japan lowered its view on economic conditions for the first time in more than two years after the coincident index extended its decline in September, falling to its lowest level in a year .
The current economic conditions index, compiled from data including factory output, employment and retail sales, fell 3.8 points from the previous month to 87.5, the Cabinet Office said , marking the third consecutive month of decline. The fall was the biggest since May 2020.
The government on Monday lowered its assessment of the index to “weaken” after “improving” during its first downgrade since August 2019.
Stagnant shipments of cars and its components along with slowing exports and industrial production – driven down by the auto industry – contributed to the index’s fall, a government official said during a press conference.
The leading economic indicators index, used to predict the direction of the economy for the next few months, fell 1.6 points in September to 99.7, the government also said.
Reporting by Yoshifumi Takemoto and Kantaro Komiya; Editing by Jacqueline Wong
Our Standards: The Thomson Reuters Trust Principles.