Description
The Japan Business Conditions Lagging Composite Index is released by the Cabinet Office of Japan and serves as a comprehensive measure to assess the economic conditions in the later stages of economic change. Unlike the Leading Index and the Coincident Index, the Lagging Index reflects the outcomes of economic changes, typically showing movements after economic trends have already become evident. This index is composed of the following nine key economic indicators:
1. Index of Tertiary Industry Activity - Business Services
2. Index of Regular Workers Employment - Industries Covered, Change from Previous Year
3. Business Expenditures for New Plant and Equipment at Constant Prices - All Industries
4. Living Expenditure - Workers' Households, Change from Previous Year
5. Corporation Tax Revenue
6. Unemployment Rate
7. Contractual Cash Earnings - Manufacturing
8. Consumer Price Index - All Items, Less Fresh Food, Change from Previous Year
9. Index of Producer's Inventory - Final Demand Goods
An increase in the Lagging Index typically indicates that the intensity of economic activity has risen, suggesting that economic growth momentum may be continuing. Conversely, a decline in the index may indicate that economic activity is slowing down, signaling a potential entry into a recession.
This data is released monthly, providing an update on the movements in Japan's lagging economic indicators for the previous month.