The government on Wednesday downgraded its assessment of business conditions with the release of a key economic indicator that was below the boom-or-bust line for the second consecutive month in December, thanks to weak production and consumption indicators.
The index of coincident economic indicators, a key gauge of the current state of the economy, stood at 44.4 percent in December, up from a revised 30 percent the previous month, the Cabinet Office said in a preliminary report.
In November, the index sank beneath the boom-or-bust line of 50 percent for the first time in 10 months due to a decline in industrial production. A reading above 50 percent is considered a sign of economic expansion, while a figure below that is seen as a sign of contraction.