5 February 2002, 09:30  Japan leaves Dec leading index assessment steady; inventories improve

TOKYO (AFX-ASIA) - The Cabinet Office said it held its assessment for the December leading index steady after the rebound in the latest numbers due to uncertainty whether the trend will continue into January. The leading index rose to 30.0 points in December from a revised 9.1 points in the month earlier. "The most positive element is that inventory adjustments in the electric machinery sector, such as electronic components, are progressing remarkably due to strong demand from the US," an official said. "We want to closely watch future movements but at this point we cannot predict whether this will continue into January," he added. "The coincident index may reach the 50 point boom-bust line as inventory adjustments may help improve manufacturing production," he said. The coincident index rose to 33.3 points in December, from 10.0 points the previous month.

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