FX.co ★ Japan Coincident Index Slips to 4-Month Low

In March 2025, Japan's index of coincident economic indicators, which evaluates factory output, employment levels, and retail sales, dropped to 116.0. This represents a decrease from the final figure of 117.3 recorded in February and marks the lowest level observed since November, according to preliminary data. The decline underscores ongoing challenges faced by private consumption due to elevated cost pressures and highlights the increasing impact of substantial U.S. tariffs. During this period, imports remained stable, whereas exports experienced a slight increase in anticipation of forthcoming American tariffs. Concurrently, the Bank of Japan opted to maintain its key short-term interest rate at approximately 0.5% during their March meeting—a peak not seen since 2008. The board emphasized the necessity of closely monitoring escalating global economic risks and their potential implications for Japan’s delicate recovery.