Japan's key gauge of the state of the economy stayed above the boom-or-bust line of 50 percent in July for the sixth consecutive month, the government said Friday in a preliminary report.

The coincident index stood at 88.9 percent, up from a revised 81.8 percent in June, the Cabinet Office said.

A senior Cabinet Office official said the index's improving trend remains intact and the index for August will probably remain above 50 percent.