Japan’s leading economic index — which reflects the outlook for the coming months based on indicators such as job offers and consumer sentiment — rose to 107.4 in August 2025, up from July’s 106.1 and surpassing market forecasts of 107.1, preliminary estimates showed. This marks the highest level since March, supported by improving household spending, which increased 1.4% in July, up from 1.3% in June, marking the third consecutive monthly rise in personal expenditure. Meanwhile, consumer confidence in September reached its highest level in nine months. On the other hand, the unemployment rate rose to 2.6% in August, marking the highest reading since July 2024, and employment declined to a four-month low.