Japan Coincident Index

Japan’s coincident economic index, which tracks key indicators including factory output, employment, and retail sales, rose to 115.4 in October 2025 from an upwardly revised 114.9 in the previous month, marking its highest level since June, according to flash data. The latest reading pointed to a moderate economic recovery, with U.S. trade policies affecting mainly the automotive sector. Private consumption showed signs of picking up, supported by improvements in employment and income, despite muted consumer sentiment. Meanwhile, business conditions remained largely flat, corporate bankruptcies rose, and the sense of a labor shortage stayed high. On the monetary front, the Bank of Japan kept short-term rates unchanged in October, maintaining the highest levels since 2008 and extending a pause since the last hike in January.