Japan’s coincident economic index stood at 120.6 in July 2026, matching its flash estimate and reaching its highest level since October 2018. Separately, the leading economic index, a forward-looking gauge based on indicators including job offers and consumer sentiment, was revised to 117.7 from 117.9, up from 116.2 in June and its highest level since January 2014. The readings reflected support from Japan’s record fiscal budget, including measures to ease living costs and provide emergency energy assistance amid Middle East conflict-related pressures. The Bank of Japan kept its short-term policy rate at 1.0% in July, its highest level since September 1995, and assessed risks to economic activity as broadly balanced.