Japan Leading Index Falls to 116.4 in September, Missing Forecasts

Japan's Leading Index came in at 116.4 for September on a preliminary basis, falling short of the consensus estimate of 116.6 and down sharply from the prior reading of 118.0. The month-on-month change registered at -1.6%, a significant reversal from the previous month's 0.4% gain, pointing to a deterioration in forward-looking economic conditions.

The Coincident Index offered a brighter counterpoint, rising to 119.5 in September against an estimate of 119.4 and a prior reading of 118.8, a month-on-month increase of 0.7% that follows a previous decline of 1.8%. While the coincident gauge suggests current economic activity held up, the sharper-than-expected drop in the leading index raises questions about the near-term growth outlook for Japan.