Japan’s coincident economic index, which tracks key indicators including factory output, employment, and retail sales, came in at 114.6 in September 2025, matching the flash figure and registering the highest level since June. The latest figure pointed to a modest economic recovery in Japan, with U.S. trade policy effects concentrated in autos. Household spending is beginning to recover, while corporate investment looks set to advance further, underpinned by stable profits and efficiency gains. Industrial output was unchanged, even as services activity quickened, and consumer inflation stayed firm. The Bank of Japan, meanwhile, kept short-term rates unchanged in September, maintaining their highest level since 2008 while hinting at gradual policy normalization.