The government said Friday that it has revised downward its key gauge of the state of the economy for February due to weak production-related data.
The Cabinet Office said the index of coincident indicators was revised to 10 percent for February from a preliminary 14.3 percent, signaling weak economic activity.
According to government economists, a reading above 50 percent is considered a sign of economic expansion, while a reading below that is believed to indicate a contraction.
A Cabinet Office economist traced the downward revision mainly to weak production-related data such as the utilization rate in the manufacturing sector, production material consumption and sales at small and midsize makers.
The index of leading indicators, a measure of economic growth six to nine months down the road, was revised downward to 33.3 percent from a preliminary 42.9 percent as a result of a dip in private sector machinery orders and a rise in makers’ inventories.
The index of lagging indicators, which gauges economic performances in the recent past, was revised upward to 64.3 percent from a preliminary 58.3 percent due to positive data on inventories.
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