The Conference Board Leading Economic Index® (LEI) for Japan Increases

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Jan 08, 2015, 08:00 ET

NEW YORK, Jan. 8, 2015 /PRNewswire/ -- The Conference Board Leading Economic Index® (LEI) for Japan increased 0.6 percent in November to 103.3 (2010 = 100), following a 0.1 percent increase in October, and a 0.8 percent increase in September.

At the same time, The Conference Board Coincident Economic Index® (CEI) for Japan, a measure of current economic activity, decreased 0.1 percent in November to 97.7 (2010 = 100), following no change in October, and a 0.5 percent increase in September.

The most recent improvement in The Conference Board LEI was largely the result of monetary policies and improved stock prices, although business failures (inverted) and the yield spread were also strong positive contributors to the LEI in the second half of 2014. Meanwhile, the Conference Board CEI for Japan continues on a downward trend, but the rate of decline has eased compared to first half of 2014. The moderately improved performance of the leading economic index suggests that the current contraction in economic activity is likely to continue subsiding, with some possible upside potential during the early months of 2015.

About The Conference Board Leading Economic Index^®(LEI) for Japan
The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.

The ten components of The Conference Board Leading Economic Index^® for Japan include:

Operating Profits
Dwelling Units Started
Business Failures
Index of Overtime Worked
Stock Prices (TOPIX)
Six-Month Growth Rate of Labor Productivity
Tankan Business Conditions Survey
Money Supply
Yield Spread
New Orders for Machinery and Construction

For more information including full press release and technical notes:
http://www.conference-board.org/data/bcicountry.cfm?cid=5

For more information about The Conference Board global business cycle indicators:
http://www.conference-board.org/data/bci.cfm

About The Conference Board
The Conference Board is an independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.

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