The government said Wednesday its key gauge of the nation's economic activity topped the boom-or-bust line of 50 percent in January for the second consecutive month.

The index of coincident indicators, which is designed to measure the current state of the economy, stood at 71.4 percent after a reading of 80 percent in December, the Cabinet Office said in a preliminary report.

A reading above 50 percent is considered to indicate expansion, while a figure below 50 percent indicates contraction.