Japan’s economy has turned positive as the depreciation of the yen sparks hopes of a recovery in exports, prompting companies to boost production, a government report said Friday.
The index of coincident indicators, such as industrial output, retail sales and new job offers, climbed to 105.9 in May from 105.1 the previous month for the sixth straight monthly rise, the Cabinet Office said in a preliminary report.
From May, the base year of the indicators was changed to 2010 from 2005 and past figures were revised retroactively.
The office raised its basic assessment of the coincident index for the first time in three months, saying it indicates the economy has entered an “upturn phase.” Last month, the office said the index suggests the economy “has bottomed out.”
A Cabinet Office official said the assessment would be upgraded to “improvement” if the coincident index’s three-month moving average gains in June.
“We can tentatively say there is a high possibility that the economy is in an expansion phase,” the official added.