Japan Revises May Leading Index Down; Coincident Gauge Holds Steady

Japan’s Cabinet Office said the composite leading indicator, which signals the likely direction of the economy several months ahead, was revised to 104.8 in May from the preliminary reading of 105.3 released earlier this month. The final figure is below both April’s 104.2 and the market consensus of 105.2, suggesting softer momentum in the near-term outlook. The coincident index, a gauge of current economic conditions, edged up to 116.0 in the final estimate, matching April’s level and slightly above the preliminary 115.9 reading, indicating that activity remains broadly stable even as forward-looking indicators ease.