Japan Leading Index Tops Forecast, Signals Modest Economic Pickup

Japan’s Cabinet Office reported that the country’s composite Leading Index rose to a preliminary 106.1 in June, edging past the consensus forecast of 106.0 and improving from a revised 104.8 in May. The gauge, which combines a range of forward-looking economic indicators, is designed to signal the likely direction of the business cycle several months ahead. The coincident index, which tracks current economic conditions, also improved, climbing to a preliminary 116.8 from 116.0 and slightly exceeding the projected 116.6. The back-to-back upticks in both indicators suggest modest momentum in the world’s third-largest economy as it continues to navigate sluggish domestic demand and an uncertain external environment.