The nation's key composite index of economic indicators that reflect the current state of the economy fell in August for the second straight month due to weaker shipments and production amid the sluggish Chinese economy, the government said Wednesday.

The index of coincident indicators, such as industrial output, retail sales and new job offers, fell 0.6 point from the previous month to 112.5 against the 2010 base of 100, the Cabinet Office said in a preliminary report.

The result was largely due to slower shipments of production equipment and weaker manufacturing activity in Japan amid an overseas economic slowdown, a Cabinet Office official said.

"Shipments and production of machinery for exports to China dropped, while demand for auto parts in the North American market was not strong in the month," the official said.

In the reporting month, the Chinese central bank unexpectedly devaluated the yuan, triggering a global stock market rout due to fears of a China-led global economic slowdown.

However, the official said the shipment index of small and medium-sized manufacturers showed signs of improvement.

The government kept intact its basic assessment of the coincident index, saying it is "pausing" for the fourth consecutive month.

In August, the index of leading indicators, which predicts developments in the coming months, shed 1.5 points to 103.5 for the second straight monthly decrease.

Meanwhile, the index of lagging indicators, measuring economic performance in the recent past, was down 0.8 point at 115.2, dropping for the first time in three months.