CEIC Leading Indicator for Japan at 5-month low in February
Japan’s CEIC Leading Indicator fell to 99.95 in February 2022, from 101.2 in January, according to the flash estimate. This is the lowest reading of the non-smoothed indicator since September 2021 and the second consecutive decline after continuous acceleration in Q4 2021. The smoothed indicator declined to 101.9 from 103.2 in the previous month and has been decelerating since June 2021, signaling that the peak of the business cycle might have passed in Q2 2021.
Motor vehicle sales in Japan continued to struggle in February, dropping by 18% y/y as the global shortage of microchips is halting production. Consumer confidence detreated for the second month in a row, with Japanese consumers regarding their overall livelihood at the lowest level since January 2021. Corporate manufacturing sentiment remained almost unchanged in February, after falling dramatically to 42.3 in January. OECD’s CPI-based real effective exchange rate (REER) index dropped to its lowest level since 1982, indicating improvement in Japan’s trade competitiveness. Japan’s TOPIX small index closed February 2.1% up m/m.
More visuals on Japan’s CEIC Leading Indicator here
Further data and analysis on Japan’s economy are available on the CEIC Japan Economy in a Snapshot – Q4 2021 report.