Japan's coincident index of business conditions rose 0.3 point from the previous month to 118.2 in June 2026, improving for the first time in two months and remaining at its highest level since May 2019, while the leading index held at 116.4, its highest since July 2021. Gains in wholesale sales, investment goods shipments and industrial production, including strong exports of electronic components to China, imports from South Korea and output of semiconductor manufacturing equipment, lifted the current-conditions gauge and pointed to a semiconductor-led boost to production. The Cabinet Office maintained its assessment that the economy "is showing improvement," and the data broadly backed the government's upgraded monthly view that Japan is "recovering at a moderate pace," even as lower petroleum product prices and weaker producer inventory ratios weighed on the outlook gauge.