Japan Leading Index Drops to 105.6, Pointing to Softer Growth Ahead

Japan’s Cabinet Office reported that its composite Leading Index slipped to a final 105.6 in June, down from the initial 106.1 estimate. The Coincident Index, which tracks current economic activity, was revised marginally lower to 116.7 from 116.8. The Leading Index aggregates indicators such as new orders and stock prices to signal the economy’s direction several months ahead, while the Coincident Index reflects conditions closer to real time. The slight downward revisions suggest a modest cooling in momentum as the third quarter begins.