FX.co ★ Japan Leading Economic Index Highest Since 2014

Japan’s leading economic index, which forecasts economic activity over the coming months based on indicators such as job offers and consumer sentiment, rose to 117.9 in July 2026 from a downwardly revised 116.2 in June, according to preliminary estimates. This was the highest reading since January 2014, underpinned by the government’s record fiscal budget, which included broad measures to ease cost-of-living pressures and emergency energy support to offset the impact of the Middle East conflict, while inflation stayed close to the Bank of Japan’s 2% target. At the same time, the unemployment rate fell to 2.4% in July, its lowest level since July 2025, indicating a resilient labor market even as total employment slipped to a four-month low. Consumer confidence also strengthened, reaching a six-month high, reflecting households’ more positive assessment of their overall livelihood.