July: The Recession Indicator moved up to 19.6%
－ The Leading Index fell for the first time in two months
The Recession Indicator for Japan released by Japan Center for Economic Research (JCER) rose to 19.6% from the previous month (Figure 1). The Leading Index as an underlying data fell for the first time in two months due to deteriorations in the growth of money stock (M2), inventory ratio of producer goods for mining and manufacturing, sales forecast of small businesses, and among others. Although, the recession probability still remains the level below 67% which is a reference point of signaling a recession, consumer confidence in August got worse because of a rapid increase in the number of people infected with COVID-19, and economic outlook is unpredictable.
【Figure 1. The Recession Indicator (July 2021)】
【Table 1. The Recession Indicator and the Leading Index (over the last year)】
* The estimation method of the Recession Indicator has revised since the release in July 2020. Please refer to here for more details.
－ The Leading Index rose for two consecutive months
－ The Leading Index rose for the first time in three months
－ The Indicator rose to near warning level
－ The Leading Index fell for the first time in four months
－ The Leading Index rose for three consecutive months