The index of business conditions in July reflects that automobile production is declining due to the effects of global semiconductor shortages, etc., and the index showing the current state of the economy is 0.1 points lower than the previous month, 2? It fell for the first time in a month.
However, the economic judgment has been left unchanged from the previous expression of "indicating improvement."
As for the business conditions index for July announced by the Cabinet Office, the "coincidence index" showing the current state of the economy was 94.5, with 2015 as 100, 0.1 points lower than the previous month, falling for the first time in 2 months. bottom.
This is mainly due to the global shortage of semiconductors and the spread of the new coronavirus infection, which has affected the procurement of parts from Asia, resulting in a decline in automobile production.
However, the economic judgment mechanically derived from the movement of the index has been left unchanged from the previous expression of "indicating improvement."
In addition, the “leading index”, which shows the future of the economy several months later, fell 0.5 points from the previous month, the first decline in two months.
The Cabinet Office says, "The impact of the spread of infection in Asia is appearing mainly in the manufacturing industry, and we would like to carefully watch future movements, including how long the semiconductor shortage will be prolonged."