The Conference Board Leading Economic Index® (LEI) for Japan declined 0.8 percent in July to 97.4 (2004 = 100), following a 0.8 percent decline in June, and a 1.2 percent decline in May.
At the same time, The Conference Board Coincident Economic Index® (CEI) for Japan, a measure of current economic activity, declined 0.1 percent in July to 95.0 (2004 = 100), following a 0.5 percent decline in June, and a 0.1 percent increase in May.
The recent rate of decline in both the LEI and CEI for Japan accelerated further through July, with weaknesses slightly more widespread than strengths. The sharp contraction in second quarter GDP was mainly due to an increase in the sales tax, the effects of which should be temporary. Taken together, the recent behavior of the LEI and CEI suggests that the rate of economic activity is unlikely to accelerate considerably in the near-term, with downside risks to growth still persisting.