Japan Key Economic Index Turns Positive Sparking Hope

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.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza