"The trend is taking hold and there is a greater possibility the economy is in recession, judging from the coincident index"
- Japanese Cabinet Office
Japanese leading indicators rose more than expected in October, indicating some positive signs for the world's third largest economy. The Cabinet Office said that nation's index of leading economic indicators, which is designed to predict the direction of the economy, advanced to a seasonally adjusted 92.5, up from 91.6 in the preceding month. The reading came above analysts' expectations of an increase to 92.0. On the other hand, index, which is reflecting the current state of Japan's economy, tumbled in October for the seventh straight month, adding to concerns that the economy has already slipped into recession. The coincident composite index, whose 11 indicators include retail sales and employment data as well, fell 0.9 point from the previous month to 90.6.
"The trend is taking hold and there is a greater possibility the economy is in recession, judging from the coincident index," a Cabinet Office official told reporters.
"There have been signs of the economy bottoming out," Yoshiki Shinke, chief economist at Dai-Ichi Life Research Institute. "It would not be surprising to see the decline in the coincident index coming to a halt in the near term."
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