Japan Leading Index Revised Lower

2026-03-25 07:37 By Farida Husna 1 min. read

Japan’s leading economic index, which gauges the outlook for the months ahead using indicators such as job offers and consumer sentiment, was at 112.1 in January 2026, below flash data of 112.4 but higher than a downwardly revised 110.4 in the previous month.

The reading reached its highest level since July 2022, underscoring a gradual improvement in the economic outlook.

Labor market strength persisted, with the jobs-to-applicants ratio remaining elevated, signaling sustained demand for workers.

At the same time, consumer confidence climbed to a 21-month high in January, as worries over stubborn cost pressures eased following Tokyo’s large-scale stimulus program designed to bolster household spending and stabilize growth.



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Japan Leading Index Revised Lower
Japan’s leading economic index, which gauges the outlook for the months ahead using indicators such as job offers and consumer sentiment, was at 112.1 in January 2026, below flash data of 112.4 but higher than a downwardly revised 110.4 in the previous month. The reading reached its highest level since July 2022, underscoring a gradual improvement in the economic outlook. Labor market strength persisted, with the jobs-to-applicants ratio remaining elevated, signaling sustained demand for workers. At the same time, consumer confidence climbed to a 21-month high in January, as worries over stubborn cost pressures eased following Tokyo’s large-scale stimulus program designed to bolster household spending and stabilize growth.
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Japan Leading Index Rises to Multi-Year Peak
Japan’s leading economic index, which gauges the outlook for the months ahead using indicators such as job offers and consumer sentiment, rose to 112.4 in January 2026 from a final 110.3 in the previous month, flash data showed. It marked the highest reading since July 2022, pointing to a gradually improving economic outlook. Labor market conditions remained firm, with the jobs-to-applicants ratio staying elevated, reflecting continued demand for workers. Meanwhile, consumer sentiment climbed to its highest level in 21 months in January, as concerns over persistent cost pressures eased following Tokyo’s recent large-scale stimulus package aimed at supporting household spending and stabilizing the economy.
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Japan’s leading economic index, which measures the outlook for the months ahead based on indicators such as job offers and consumer sentiment, rose to 111.0 in December 2025, higher than a preliminary reading of 110.2 and November's print of 109.9. It was the highest figure since May 2024, as labor market conditions improved modestly, with the jobs-to-applicants ratio edging up to 1.19 after hovering near a three-year low during October and November. However, consumer sentiment weakened in December after previously climbing to a 19-month high, reflecting persistent cost pressures and still-elevated borrowing costs.
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