September: The Recession Indicator marks 7.1%

－ The Leading Index exceeded the pre-corona epidemic level

Takashi MIYAZAKI

  Senior Economist

2020/11/10

  The Recession Indicator for Japan released by Japan Center for Economic Research (JCER) marks 7.1% (Figure 1). The Leading Index as an underlying data rose for four consecutive months, due to improvements in consumer confidence, inventory ratios of producer goods for mining and manufacturing and of final demand goods, and others, and the Index exceeded the level in February prior to the effects of the spread of the COVID-19 infection became apparent. At the same time, the recession probability remains at a low level significantly below 67% which is the reference level signaling a recession.

【Figure 1. The Recession Indicator (September 2020)】

【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.