Japan leading index falls to 20.0 in August from 27.3 in July

The index of leading economic indicators fell in August to 20.0 from 27.3 in July, preliminary data from the Cabinet Office show. The August figure was above the average forecast of 10.0 in a poll by the Nihon Keizai Shimbun. A reading above 50 points to economic expansion over the subsequent six months, while a reading below 50 suggests contraction. The leading index is based on 12 indicators, of which data for 10 were available for the preliminary reading, with two pointing to expansion and eight suggesting contraction. The coincident index, which measures the state of the economy at the time, rose to 77.8 in August from 75.0 in July. The average forecast was 88.9. The coincident index is based on 11 indicators, of which data for nine were available for the preliminary reading, with seven pointing to expansion and two suggesting contraction. The lagging index, which reflects economic conditions three months before, fell to 50.0 in August from 70.0 in July. The figure was based on four of six indicators used to compute the index, with two pointing to expansion and two neutral.