Japan's key economic gauge revised upward in May

Japan's key gauge of the current state of the Japanese economy in May was revised upward, as the nation's economy 'stopped worsening,' the government said on Friday.

Japan's key gauge of the current state of the Japanese economy in May was revised upward, as the nation's economy 'stopped worsening,' the government said on Friday.

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The government has upgraded its assessment of the economy for the second straight month. In a preliminary report earlier the month, the Cabinet Office had said the economy is 'worsening,' though there are some signs that the pace of decline is slowing.

An improvement in the manufacturers' capacity utilization ratio index contributed to the rise in the composite index of coincident economic indicators, the Cabinet Office said. The index stood at 87.1 against 100 for the base year of 2005, up from 86.9 in a preliminary report released July 6.

The CI consists of various indicators of economic developments for the month such as industrial production, overtime work hours and retail sales.

The index of leading indicators, which predicts developments over the next several months, however, was revised downward to 76.9 from a preliminary 77.0, but rose for the third straight month.

The index of lagging indicators, which measures economic activity in the recent past, was raised to 84.1 from 84.0.