Japan downgrades economic assessment as coincident index falls in February

TOKYO, April 6 (Xinhua) -- Japan has revised down its assessment of the economy for February following a drop in the composite index of coincident economic indicators, according to a government report.

According to the Cabinet Office, its coincident index of business conditions for February fell 1.2 points from a month earlier due to halts of vehicle production and shipments amid testing scandals involving automakers such as Daihatsu Motor.

The coincident index, which reflects current economic conditions, fell for the second straight month to come in at 110.9 against the 2020 base of 100, the Cabinet Office said in a preliminary report on Friday.

The office's assessment of the economy, based on the coincident index for the reporting month, was revised down for the second month to "signaling a possible turning point."

Data for February showed that of the eight component indicators of the preliminary report stage, six made negative contributions to the index. The remaining two indicators, linked to commercial sales, contributed positively due to the leap year.