Japan’s leading economic index—an indicator that anticipates the economic outlook based on data such as job offers and consumer sentiment—rose to 115.9 in April 2026 from an upwardly revised 115.4 in March, preliminary figures showed. The reading exceeded market expectations of 114.3 and marked the highest level since December 2021, signaling a steady improvement in the economic outlook.
The increase was supported in part by Tokyo’s large-scale stimulus program, which is aimed at shoring up household spending and stabilizing growth. This helped offset mounting cost pressures stemming from higher fuel prices linked to the conflict in the Middle East and contributed to a stronger reading than in March.
In turn, retail sales posted their fastest growth since April 2025. Labor market conditions also improved: the unemployment rate fell to 2.5%, its lowest level since July 2025, while employment climbed to a record 68.76 million. Consumer confidence strengthened as well, reaching its highest point in three months.
