The Conference Board Leading Economic Index® (LEI) for Japan Increases
NEW YORK, April 17, 2012 /PRNewswire/ – The Conference Board Leading Economic Index® (LEI) for Japan increased 1.2 percent in February to 96.1 (2004 = 100), following no change in both January and December.
At the same time, The Conference Board Coincident Economic Index® (CEI) for Japan, a measure of current economic activity, increased 0.6 percent in February to 98.8 (2004 = 100), following a 0.5 percent increase in January, and a 0.3 percent increase in December.
The Conference Board LEI for Japan has improved since the last quarter of 2011, with most components rising during this period. Meanwhile, the rate of growth in The Conference Board CEI for Japan has also picked up, but the index remains below its most recent peak reached in February 2011. Taken together, the composite indexes and their components continue to suggest that the contraction of real GDP at the end of 2011 is unlikely to continue and economic activity should improve in the coming months.
About The Conference Board Leading Economic Index® (LEI) for Japan
The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.
The ten components of The Conference Board Leading Economic Index® for Japan include:
Dwelling Units Started
Index of Overtime Worked
Stock Prices (TOPIX)
Six-Month Growth Rate of Labor Productivity
Tankan Business Conditions Survey
New Orders for Machinery and Construction
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About The Conference Board
The Conference Board is an independent business membership and research association working in the public interest. Our mission is unique: To provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.
Summary Table of Composite Economic Indexes 2011 2012 6-month Dec Jan Feb Aug to Feb Leading Economic Index (LEI) 95.0 p 95.0 p 96.1 p Percent Change 0.0 p 0.0 p 1.2 p 2.0 p Diffusion 50.0 65.0 60.0 80.0 Coincident Economic Index (CEI) 97.7 p 98.2 p 98.8 p Percent Change 0.3 p 0.5 p 0.6 p 4.0 p Diffusion 62.5 100.0 75.0 100.0 n.a. Not available p Preliminary r Revised Indexes equal 100 in 2004 Source: The Conference Board All Rights Reserved
SOURCE The Conference Board