Japan Leading Index Climbs to Highest Level in 19 Months

Japan's Leading Economic Index Hits 19-Month High in December

According to preliminary figures released by the Cabinet Office on Friday, Japan's leading economic index made an unexpected climb in December, reaching its highest point in over a year and a half. The index, which serves as a gauge for the country's future economic outlook, increased to 110.2 in December, up from 109.9 in November. This result defied economists' forecasts, who had anticipated a slight dip to 109.8.

This latest reading marks the strongest performance since May 2024, when the index stood at 111.1. In contrast, the coincident index—which reflects the current state of the economy—declined to 114.5 in December from 114.9 the previous month. Additionally, the lagging indicator also saw a decrease, falling to 110.8.