FX.co ★ Japan Coincident Index Lowest in 5 Months

Japan's index of coincident economic indicators, which gauges factors such as factory output, employment, and retail sales, decreased to 115.5 in April 2025, a slight decline from a revised figure of 115.8 in the previous month, according to preliminary data. This represents the lowest point since November of the previous year, reflecting the strain of persistently high costs on private consumption and the escalating pressure from substantial US tariffs. In terms of trade, Japan experienced a mixed performance: imports fell, whereas exports recorded their slowest growth in seven months, hindered by the new US tariffs. On the monetary front, the Bank of Japan maintained its key short-term interest rate at approximately 0.5% during its March meeting, marking the highest rate since 2008. The board indicated a readiness to continue increasing its policy interest rate and modifying monetary policy if the anticipated economic and price conditions materialize.