The Conference Board Leading Economic Index for Japandeclined 0.3 percent in December to 101.0 (2004 = 100), following a 0.4 percent increase in November and a 0.6 percent increase in October.

At the same time, The Conference Board Coincident Economic Index for Japan, a measure of current economic activity, was unchanged in December, remaining at 96.5 (2004 = 100), following a 0.1 percent increase in November, and a 0.2 percent increase in October.

The Conference Board LEI fell slightly in December and its rate of growth has been slowing in recent months. Meanwhile, the CEI remained unchanged but its six-month growth rate has improved. Taken together, the recent slowing growth in the LEI, coupled with moderate growth in the coincident economic index, suggests that the current expansion in economic activity is unlikely to gain momentum in the upcoming months.

About The Conference Board Leading Economic Index for Japan 
The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.

The ten components of The Conference Board Leading Economic Index for Japan include:

Operating Profits  
Dwelling Units Started  
Business Failures 
Index of Overtime Worked 
Stock Prices (TOPIX) 
Six-Month Growth Rate of Labor Productivity 
Tankan Business Conditions Survey 
Money Supply 
Yield Spread 
New Orders for Machinery and Construction