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07.09.202605:35:20UTC+00Japan Coincident Index Highest Since 2018

Japan's coincident economic index—a key barometer of current economic conditions derived from indicators such as industrial production, employment, and retail sales—rose to 120.6 in July 2025 from a revised 118.9 in June, preliminary data showed. This marked the highest level since October 2018, underscoring a solid recovery in economic activity. The upturn has been supported in part by government measures to contain fuel and oil price spikes amid heightened tensions in the Middle East, as well as a new fiscal policy framework designed to balance economic growth with long-term budget sustainability. At the same time, the Bank of Japan left its short-term policy rate unchanged at 1.0% in July, the highest level since September 1995, and assessed risks to economic activity as broadly balanced.

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