Japan Leading Index Revised Downward
2026-05-26 05:07
By
Chusnul Chotimah
1 min. read
Japan’s leading economic index, which gauges the outlook for the months ahead using indicators such as job offers and consumer sentiment, was revised lower to 114.0 in March 2026 from 114.5 in the preliminary estimate.
However, the latest reading was higher than February’s 113.2 and remained the highest level since August 2021, underscoring a gradual improvement in the economic outlook.
Tokyo’s large-scale stimulus program, designed to bolster household spending and stabilize growth, helped lift the index compared to February despite intensifying cost pressures caused by rising fuel prices linked to the war in Iran.
As a result, retail sales rebounded in March after declining in February.
However, the labor market eased, with the unemployment rate rising to 2.7%, and employment falling by 120 thousand to an 11-month low of 65.15 million.
Consumer confidence also weakened to its lowest level since April 2025.