FX.co ★ Japan Leading Index Revised Downward

Japan’s leading economic index, which anticipates activity in the coming months using indicators such as job offers and consumer sentiment, was revised down to 114.0 in March 2026 from an initial estimate of 114.5. Even so, the index rose from 113.2 in February and remained at its highest level since August 2021, pointing to a gradual improvement in the economic outlook.

Tokyo’s large-scale stimulus program—aimed at supporting household spending and stabilizing growth—helped push the index higher compared with February, despite mounting cost pressures from rising fuel prices tied to the war in Iran. In turn, retail sales rebounded in March after declining in February.

At the same time, labor market conditions softened: the unemployment rate increased to 2.7%, while employment fell by 120 thousand to an 11‑month low of 65.15 million. Consumer confidence also deteriorated, slipping to its weakest level since April 2025.