Japão Coincident Index

Japan’s index of coincident economic indicators—which tracks factory output, employment, and retail sales—edged down slightly to 115.9 in May 2025 from 116.0 in the previous month, according to a preliminary report. The dip came as the economy continued its moderate recovery, though uncertainties around U.S. trade policy and persistent cost pressures remained. In particular, surging rice prices continued to weigh on households, despite government measures aimed at easing the burden. Industrial output was flat for the month, while the employment situation showed signs of improvement. On the trade front, the U.S. and Japan agreed to extend negotiations after failing to reach a breakthrough. Meanwhile, the Bank of Japan maintained its cautious stance, continuing to monitor external risks and domestic inflation pressures, even as it plans to gradually raise interest rates while remaining flexible to shifting economic conditions.