Japan Leading Index Highest in 19 Months

Japan’s leading economic index, which gauges the outlook for the months ahead using indicators such as job offers and consumer sentiment, rose to 112.4 in January 2026 from a final 110.3 in the previous month, flash data showed. It marked the highest reading since July 2022, pointing to a gradually improving economic outlook. Labor market conditions remained firm, with the jobs-to-applicants ratio staying elevated, reflecting continued demand for workers. Meanwhile, consumer sentiment climbed to its highest level in 21 months in January, as concerns over persistent cost pressures eased following Tokyo’s recent large-scale stimulus package aimed at supporting household spending and stabilizing the economy.

Japan’s leading economic index, which measures the outlook for the months ahead based on indicators such as job offers and consumer sentiment, rose to 111.0 in December 2025, higher than a preliminary reading of 110.2 and November's print of 109.9. It was the highest figure since May 2024, as labor market conditions improved modestly, with the jobs-to-applicants ratio edging up to 1.19 after hovering near a three-year low during October and November. However, consumer sentiment weakened in December after previously climbing to a 19-month high, reflecting persistent cost pressures and still-elevated borrowing costs.

Japan’s leading economic index, which gauges the outlook for the coming months based on indicators such as job offers and consumer sentiment, increased to 110.2 in December 2025 from a final reading of 109.9 in November, above market forecasts of 109.8, preliminary estimates showed. The latest reading marked the highest level since May 2024, supported by consumer confidence, which was at its highest since April 2024. Meanwhile, cost pressures eased in December, marking their lowest level since March 2022. However, overall consumption remains in a recovery phase, despite falling in December, supported by accommodative monetary conditions