Japan's diffusion index of leading economic indicators for August was a preliminary 72.2 on a scale of 100, up from a revised 60.0 for the previous month, the government said on Thursday. The index, which indicates conditions for the next three months, was above the critical reading of 50 for the 12th month in a row, suggesting more improvement ahead in business conditions. The coincident index, which indicates current economic conditions, stood at a preliminary 38.9 in August, down from a revised 80.0 in July, the Cabinet Office said. It was below 50 for the first time in 16 months. The Cabinet Office revises the indices several times before issuing final figures.///