Business Condition Worsened
The Cabinet Office released on July 7 th the Indexes of Business Conditions of May 2025. The coincident index (CI), which indicates actual condition of economy, marked 0.1 point of decline from the previous month. The evaluation of business condition was “worsening,” for the first time since July 2020 when COVID-19 damaged whole economy. The government of Japan did not determine whether the drop was caused by tariff policy of Trump administration of the United States. Economic and Social Research Institute of the Cabinet Office releases monthly index of business condition in Japan to grab the situation of Japanese economy by analyzing economic indexes such as production of goods or employment. The basic assessment is made through the CI which describes contemporary situation of current business activities. Definition of “worsening” is decline for three consecutive months in average of the DI in latest three months. In the case of May 2025, the DI showed...