Japan’s index of coincident economic indicators - which tracks key data such as factory output, employment, and retail sales - increased to 116.8 in June 2025 from 116.0 in the previous month, marking the highest reading since February, flash data showed. The rise reflected a moderately recovering economy, despite lingering uncertainty from U.S. trade policies. At the same time, private consumption improved, supported by better employment and income conditions, even as cost pressures persisted, particularly from surging rice prices. To ease the burden, the government has maintained support measures, including increased rice imports from the U.S., Thailand, and China. On the monetary front, the Bank of Japan kept its key short-term interest rate unchanged in June and maintained a cautious stance amid global headwinds.