The Conference Board Leading Economic Index® (LEI) for Japan increased 0.4 percent in October to 99.1 (2004 = 100), following a 0.8 percent increase in September, and a 0.3 percent increase in August.
At the same time, The Conference Board Coincident Economic Index® (CEI) for Japan, a measure of current economic activity, increased 0.1 percent in October to 95.6 (2004 = 100), following a 0.4 percent increase in September, and a 0.1 percent decline in August.
The LEI and CEI for Japan have improved in recent months, and the strengths among their components have become more widespread. The six-month change for the LEI still remains in negative territory, but the rate of its decline has eased considerably. The CEI's six-month growth rate has moved slightly into positive territory for the first time since the first quarter of this year. Taken together, the behavior of both indexes suggests that the current contraction in economic activity is unlikely to continue, with some upside potential for growth in early 2015.