FX.co ★ Japan Coincident Index Confirmed at Highest Since 2018

Japan’s coincident economic index, a key measure of current economic conditions based on indicators such as industrial production, employment, and retail sales, stood at 120.6 in July 2026, in line with the preliminary estimate and marking its highest level since October 2018. The reading signaled a solid recovery in economic activity, supported by government measures to curb fuel and oil price increases tied to tensions in the Middle East, as well as a new fiscal policy framework designed to balance economic growth with budget sustainability. At the same time, the Bank of Japan left its short-term policy rate unchanged at 1.0% in July, its highest level since September 1995, and assessed risks to economic activity as broadly balanced.