Japan revises down key economic gauge for May

Japan has revised down the composite index of coincident economic indicators for May, a key gauge of the current state of economy, showed a government report released on Monday.

According to the report issued by Japan's Cabinet Office, the index of coincident indicators for May, Japan's broadest indicator of economic health, came to 109.9 against 100 for the base year of 2010, down from 110.5 in the preliminary report released earlier this month.

The index dropped 2.1 points from the previous month, compared with the preliminary reading of a 1.5-point fall.

The index of leading indicators, an economic indicator which predicts conditions over the next several months and consists of 12 indexes such as account inventory ratios, machinery orders, stock prices and other leading economic indicators, stood at 99.7, down 0.3 point from 100.0 in the preliminary report.

The Cabinet Office also reported the index of lagging indicators, which reflects conditions in the recent past, at 112.9, 0.8 point lower than the preliminary 113.7.

In addition, the Cabinet Office maintained its recent assessment based on the index of coincident indicators, saying the index shows Japan's economy is "pausing."

The indexes take in statistics from all aspects of the Japanese economy to demonstrate both the conditions at present and the future outlook for Japan. Enditem