Japan Coincident Index Revised Narrowly Higher

Japan’s index of coincident economic indicators—which tracks key data such as factory output, employment, and retail sales—stood at 116.0 in May 2025, slightly above the flash estimate of 115.9 but unchanged from April's reading.

The latest result reflected a moderately recovering economy, tempered by uncertainty surrounding U.S.

trade policy and persistent cost pressures.

Simultaneously, industrial output was flat in the month, but there were signs of improvement in employment conditions.

Meanwhile, the government continued efforts to ease the burden of soaring rice prices through targeted measures.

On the policy front, the Bank of Japan maintained a cautious stance, keeping a close eye on external risks and inflationary trends at home.

The central bank signaled its intention to gradually raise interest rates but emphasized the need for flexibility in response to evolving economic conditions.