Japan’s leading economic index, which gauges the outlook for the coming months based on indicators such as job offers and consumer sentiment, increased to 110.5 in November 2025 from 109.8 in October and came in above market forecasts of 110.4. The latest reading marked the highest level since May 2024, supported by consumer confidence, which rose to its highest level in 18 months in November. Employment reached a fresh record high, despite the unemployment rate remaining steady at 2.6%. Meanwhile, cost pressures are expected to persist heading into year-end. However, overall consumption remains in a recovery phase.

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