09.01.202605:02:32UTC+00Japan Coincident Index Eases from 4-Month High

Japan's coincident economic index, which monitors key indicators such as factory production, employment, and retail sales, dipped to 115.2 in November 2025 from a four-month high of 115.9 in October, as per preliminary figures. Despite this downturn, the index still reflects a moderate recovery in the economy, bolstered by gains in employment and household earnings. Nonetheless, there are increasing downside risks, particularly with the uncertainty introduced by potential U.S. trade policies. Persistent inflationary pressures are also worrisome, as rising living costs might impede consumer spending. On the monetary policy front, the Bank of Japan maintained its short-term interest rate in October, holding borrowing costs at their highest since 2008, and continuing the halt on rate changes that began after a January hike. However, the central bank suggested it might proceed with gradual rate increases should economic conditions and inflation show continued improvements.