TOKYO, May 13 – Japan’s coincident indicator index worsened in March and the government cut its view, signalling the economy may be in recession as the U.S.-China trade war and weak external demand hurt the export-reliant economy.
The assessment on the index by the government says the economy is worsening, which suggests there is a high possibility the economy is in recession.
Previously, the government said the economy was at “a turning point towards a downgrade”, meaning the economy may have peaked a few months earlier.
It will later examine the economy comprehensively and retrospectively with panel members and officially define the economic cycle.
The index of coincident economic indicators, which consists of a range of data including factory output, employment and retail sales data, fell a preliminary 0.9 point in March from the previous month, the Cabinet Office said on Monday.
The index for leading economic indicators, which is a gauge of the economy a few months ahead and is compiled using data such as job offers and consumer sentiment, slipped 0.8 point from February. (Reporting by Kaori Kaneko Editing by Chang-Ran Kim)