7 November 2005, 09:35  Japan September leading index falls to 50 from 100 in August

Japan's index of leading economic indicators fell to 50 in September from 100 in August, preliminary data from the Cabinet Office showed. The figure matched market expectations in a survey of 19 brokerage and research houses polled by the Nihon Keizai Shimbun. A reading above 50 points to economic expansion over the next six months, while a reading below 50 suggests contraction. The leading index is based on 12 indicators, of which data for 10 were available for the preliminary reading, with five suggesting expansion and five toward contraction. The coincident index, which measures the current state of the economy, dropped to 55.6 from 80.0 in the previous month. The coincident index is based on 11 indicators, of which data for nine were available for the preliminary reading. Five indicators reflected expansion and four suggested contraction. The lagging index also fell to 25 from 75. The figure was based on four of six indicators used to compute the index which reflects economic conditions three months earlier, with one suggesting expansion and three indicating contraction.

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