Japan’s Economic Outlook Improves Slightly in May

Japan’s economic conditions showed signs of improvement in May 2025, according to preliminary data released by the Cabinet Office.

The leading index, which anticipates future economic activity, rose to 105.3 points from 104.2 in April — a 1.1% increase in line with analyst expectations.

Meanwhile, the coincident index, reflecting current economic conditions, slipped by 0.1% to 115.9 points, following a 0.2% rise the previous month.

The lagging index, which tracks economic trends over a longer horizon, inched up to 112.7 from 112.5, suggesting slightly improved prospects for the year ahead.