FX.co ★ Japan Coincident Index Revised Lower

In March 2025, Japan's index of coincident economic indicators—which monitors factors such as factory output, employment rates, and retail sales—registered at 115.9. This figure was slightly below the preliminary estimate of 116.0 and lower than February's reading of 117.3, marking the weakest point since the previous November. The decline was attributed to ongoing high costs that continued to dampen private consumption, coupled with the increasing pressure of significant U.S. tariffs. Japan's economic landscape displayed mixed results in trade for the month, with stagnant imports contrasted by a slight increase in exports as companies anticipated forthcoming American duties. On the monetary front, the Bank of Japan maintained its key short-term interest rate at approximately 0.5%—the highest it has been since 2008—following its March meeting. The board highlighted the need for time to evaluate growing global economic risks and their potential implications for Japan’s delicate economic recovery.