FX.co ★ Japan Coincident Index Confirmed at 3-Month Peak

Japan's coincident economic index, which monitors key indicators such as factory output, employment, and retail sales, reached 114.6 in September 2025. This figure aligns with the preliminary estimate and represents the highest level since June. The data suggests a modest economic recovery in Japan, with the effects of U.S. trade policy primarily impacting the automotive sector. Household spending is starting to rebound, and corporate investment appears poised for further growth, supported by stable profits and increased efficiency. Industrial production remained stable, although there was an acceleration in services activity, while consumer inflation remained consistent. Meanwhile, the Bank of Japan maintained the short-term interest rates at their September levels, which are the highest since 2008, and indicated a potential for gradual policy normalization.