By Reiko Mizutome, BridgeNews
Tokyo--Feb. 5--Japan's index of leading indicators, which shows economic condition 2 to 6 months ahead, stood at 50.0 in December, compared with a revised 30.0 in November, the Cabinet Office announced Monday. Also, the index of coincident indicators, which roughly shows current economic conditions, stood at 71.4 in December, compared with 30.0 in November.
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The leading index was at the critical 50.0 "boom-or-bust" level in December, after dropping below the level in November for the first time since May.
If the leading index stays above 50.0 for three consecutive months, the economy usually enters an expansion phase within the following 3 months, according to the Cabinet Office. An index below 50.0 signals economic contraction, while that above the level indicates economic expansion.
Also, the coincident index was above the critical 50.0 level in December, after dropping below the level in November for the first time since April 1999.
Moreover, the lagging index, which shows the state of the economy 6 months to 1 year earlier, was at 50.0 in December, up from (revised) 42.9 in November.