The Changed Components of the Indexes of Business Conditions

August 7, 2020

The components of the Indexes of Business Conditions have always been re-examined after they had been used through an expansion or a contraction, and have been changed if the indexes were expected to improve their performances.

The ESRI has determined on July 30, 2020 to change the components of the indexes for the first time after August 2015, following the determination by the Committee for Business Cycle Indicators.

The information of the changed components is shown in the table below.

1. Leading Index
Old components New components
L1:Index of Producer's Inventory Ratio of Finished Goods (Final Demand Goods) unchanged (=L1)
L2:Index of Producer's Inventory Ratio of Finished Goods (Producer Goods for Mining and Manufacturing) unchanged (=L2)
L3:New Job offers (Excluding New School Graduates) unchanged (=L3)
L4:Machinery Orders at Constant Prices (Manufacturing) unchanged (=L4)
L5:Total Floor Area of New Housing Construction Started unchanged (=L5)
L6:Consumer Confidence Index unchanged (=L6)
L7:Nikkei Commodity Price Index (42 Items) unchanged (=L7)
L8:Money Stock (M2) (Change from Previous Year) unchanged (=L8)
L9:Stock Prices (TOPIX) unchanged (=L9)
L10:Index of Investment Climate (Manufacturing) unchanged (=L10)
L11:Sales Forecast DI of Small Business unchanged (=L11)
2. Coincident Index
Old components New components
C1:Index of Industrial Production (Mining and Manufacturing) unchanged (=C1)
C2:Index of Producer's Shipments (Producer Goods for Mining and Manufacturing) unchanged (=C2)
C3:Index of Producer's Shipment of Durable Consumer Goods unchanged (=C3)
C4:Index of Non-Scheduled Worked Hours (Industries Covered) unchanged (=C4)
C5:Index of Producer's Shipment (Investment Goods Excluding Transport Equipments) unchanged (=C5)
C6:Retail Sales Value (Change from Previous Year) unchanged (=C6)
C7:Wholesale Sales Value (Change from Previous Year) unchanged (=C7)
C8:Operating Profits (All Industries) unchanged (=C8)
C9:Effective Job Offer Rate (Excluding New School Graduates) unchanged (=C9)
none Exports Volume Index (=C10)
3. Lagging Index
Old components New components
Lg1:Index of Tertiary Industry Activity (Business Services) unchanged (=Lg1)
Lg2:Index of Regular Workers Employment (Industries Covered) (Change from Previous Year) unchanged (=Lg2)
Lg3:Business Expenditures for New Plant and Equipment at Constant Prices (All Industries) unchanged (=Lg3)
Lg4: Living Expenditure (Workers' Households) (Change from Previous Year) unchanged (=Lg4)
Lg5:Corporation Tax Revenue unchanged (=Lg5)
Lg6:Unemployment Rate unchanged (=Lg6)
Lg7:Contractural Cash Earnings (Manufacturing) unchanged (=Lg7)
Lg8:Consumer Price Index (All items, Less Fresh Food) (Change from Previous Year) unchanged (=Lg8)
Lg9:Index of Producer's Inventory (Final Demand Goods) unchanged (=Lg9)

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