FX.co ★ Japan Leading Index Highest Since 2014

Japan’s leading economic index, which anticipates economic activity in the coming months based on indicators such as job openings and consumer sentiment, rose to 118.0 in August 2026 from a slightly revised 117.6 in July, preliminary data showed. The figure came in just below market expectations of 118.1 but marked the highest reading since January 2014. The improvement was underpinned by the government’s record fiscal budget, featuring broad measures to ease cost-of-living pressures and emergency energy support aimed at mitigating the impact of the Middle East conflict. Inflation nevertheless remained close to the BOJ’s 2% target. At the same time, the unemployment rate ticked up from July’s 12-month low, even as employment increased by 300,000, indicating continued resilience in labor market conditions. Consumer confidence weakened slightly but stayed near a six-month high, supported by households’ more favorable assessments of income growth and employment prospects.